Product details

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Abstract

Unprecedented events had transformed the maritime trade activities, one among them was piracy. Piracy in Somalia flourished due to the strategic location at the Horn of Africa, and the political turmoil. Ships sailing near Somalia have been attacked by pirates since the 1990s. However, the intensity had increased thereafter. Huge ransoms, usually more than $1 million dollars were paid to the pirates for the release of the hijacked ships. One estimate showed they had acquired nearly $30 million as ransom payment in 2008 alone. Somali piracy had a devastating effect on international trade as more than 80% of the international maritime trade moved through the Gulf of Aden. Piracy had also increased the insurance premium for the Gulf of Aden by tenfold. The shipment cost would increase considerably if the ships had to avoid the Gulf of Aden / Suez Canal and divert around the Cape of Good Hope. Apart from the economic impact, Somalia piracy also jeopardised the delivery of vital humanitarian assistance. In order to counter piracy, several international organisations had made attempts such as deployment of the NATO alliance warships, US Navy''s fifth fleet, and warships from other countries. In spite of all the efforts put in by the international bodies, global navies believe that they cannot guarantee the safety of ships across the Gulf of Aden region.
Other setting(s):
2008-2009

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Abstract

Unprecedented events had transformed the maritime trade activities, one among them was piracy. Piracy in Somalia flourished due to the strategic location at the Horn of Africa, and the political turmoil. Ships sailing near Somalia have been attacked by pirates since the 1990s. However, the intensity had increased thereafter. Huge ransoms, usually more than $1 million dollars were paid to the pirates for the release of the hijacked ships. One estimate showed they had acquired nearly $30 million as ransom payment in 2008 alone. Somali piracy had a devastating effect on international trade as more than 80% of the international maritime trade moved through the Gulf of Aden. Piracy had also increased the insurance premium for the Gulf of Aden by tenfold. The shipment cost would increase considerably if the ships had to avoid the Gulf of Aden / Suez Canal and divert around the Cape of Good Hope. Apart from the economic impact, Somalia piracy also jeopardised the delivery of vital humanitarian assistance. In order to counter piracy, several international organisations had made attempts such as deployment of the NATO alliance warships, US Navy''s fifth fleet, and warships from other countries. In spite of all the efforts put in by the international bodies, global navies believe that they cannot guarantee the safety of ships across the Gulf of Aden region.

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Other setting(s):
2008-2009

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