Piracy Costs $9B A Year For The World Shipping Industry

Pirates off Somalia

Piracy Costs World Shipping Industry $9B A Year -- Stars and Stripes/AP

NEW DELHI (AP) -- Piracy is costing the global shipping trade more than $9 billion a year, according to Indian ship owners, who on Monday demanded that the U.N. set up a maritime force to halt pirates operating off the Somalian coast in the Indian Ocean.

Increased insurance costs, longer routes to avoid pirate-infested areas, armed guards posted on board ships and ransoms paid for the release of hijacked vessels and crew push up operating costs for the global shipping industry, said Anil Devli of the Indian National Shipowners Organization.

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Update #1: Trauma and cost of piracy revealed -- Press Association
Update #2: Somalia: Pirates add billions to the cost of world trade -- Financial Times
Update #3: On World Maritime Day, UN warns of high costs of piracy -- UN News Centre

My Comment: I suspect that they are low-balling this figure. Al Jazeera has an interesting opinion piece on this issue.