Piracy in Somalia Threatens Global Trade - Feeds Local Wars

A report by Chatham House.

Summary:

• Piracy off the coast of Somalia has more than doubled in 2008; so far over 60 ships have been attacked. Pirates are regularly demanding and receiving million-dollar ransom payments and are becoming more aggressive and assertive.
• The international community must be aware of the danger that Somali pirates could become agents of international terrorist networks. Already money from ransoms is helping to pay for the war in Somalia, including funds to the US terror-listed Al-Shabaab.
• The high level of piracy is making aid deliveries to drought-stricken Somalia ever more difficult and costly. The World Food Programme has already been forced to temporarily suspend food deliveries. Canada is now escorting WFP deliveries but there are no plans in place to replace their escort when it finishes later this year.
• The danger and cost of piracy (insurance premiums for the Gulf of Aden have increased tenfold) mean that shipping could be forced to avoid the Gulf of Aden/Suez Canal and divert around the Cape of Good Hope. This would add considerably to the costs of manufactured goods and oil from Asia and the Middle East. At a time of high inflationary pressures, this should be of grave concern.
• Piracy could cause a major environmental disaster in the Gulf of Aden if a tanker is sunk or run aground or set on fire. The use of ever more powerful weaponry makes this increasingly likely.
• There are a number of options for the international community but ignoring the problem is not one of them. It must ensure that WFP deliveries are protected and that gaps in supply do not occur.

Number of Piracy Attacks and Attempts in the Gulf of Aden

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Source: Chatham House

Links:

Pirates off Somalia Get $18 - $30 million in Ransoms

On November 10, the European Union (EU) launched a secunity operation to combat Somalian pirates

Update, November 18, 2008: Somali pirates have hijacked a Saudi supertanker carrying a cargo of $100 million in oil. The capture of Sirius Star 450 nautical miles southeast of Kenya's Mombasa port, and way beyond the Gulf of Aden where most attacks have taken place this year, is their boldest attack and the culmination of several years' increasing activity.

Piracy Threatens Oil Transit through Gulf of Aden

Bab el-Mandab, the strait connecting the Red Sea with the Gulf of Aden and the Indian Ocean, has come under the attack of pirate vessels. Ships have been captured and their crews held for ransom. This threatens some 3.3 million barrels of crude, or 3.9% of daily world supply, that moves through the strait headed east for the Suez Canal.

Oil Transit Points Through Middle East Straits and
Percent of Daily Oil Demand Carried

Source: Energy Information Administration

Daily percent of oil carried:
Straits of Hormuz (Persian Gulf): 19.4% of daily demand
Bab el-Mandab (Gulf of Aden): 3.9% of daily demand
Suez Canal (Red Sea): 5.3% of daily demand

Links:
Somali Pirates Grab Ukranian Ship Loaded with 30 Tanks

Pirates from the failed African state of Somalia have attacked at least 61 ships in and around the Gulf of Aden this year (2008), 17 of them in the first two weeks of September (2008) alone, according to the International Maritime Bureau's piracy reporting center in Malaysia. That compares with 13 attacks in the area for all of 2007.

Somali Pirates Demand $20 Million to Release Ship

Navy Boats Monitor Hijacked Ship

Update: Developed Nations Push Back on Piracy

Somalia

Source: LonelyPlanet.com