The cost for shipping firms is over $100m annually Piracy off the coast of Somalia is costing the international shipping industry at least $100 million a year, a new report states. Aside from payments in ransom estimated at about $110 million over the past two years there have also been increased transportation and insurance costs, as well as costs related to protecting ships.The report from the World Peace Foundation noted that piracy was now big business with an estimated 1,500 buccaneers off the coast of Somalia involved in seven syndicates. The business is co-ordinated by a few bosses operating mainly from Kenya, Dubai and Lebanon. The report predicts that acts of piracy will escalate unless urgent action is taken.It proposes, for instance, providing pirates with economic incentives. Shipping union officials in the West have also urged ship owners to ensure their vessels travel in convoys under naval protection particularly in the Gulf of Aden where the vast majority of attacks occur on solitary vessels.A senior Nautilus official said merchant ships that abided by the naval task force recommendations to travel as group transits, remained safe. The problem is, some ship owners arent prepared to wait for the task force. They...

Security problems reveal Maritime Authority report criticises safety system on board Danish shippers massive oil processing tanker. A raging fire that resulted from a gas compressor explosion aboard Maersk-owned oil tanker Ngujima-Yin in spring 2009 could have been quickly brought under control had the ships security precautions been in place, according to a report released yesterday by the Danish Maritime Authority.The incident report, compiled by the authoritys accident investigation department, cited numerous safety violations aboard the 333-metre long ship primarily due to inoperative or faulty equipment. The Ngujima-Yin operates off Australias northwestern coast and is the largest floating production storage and offloading ship in Australian waters.Among the problems cited in the report were three fire-extinguishing devices that were not properly maintained and an alarm-triggered surveillance system that did not function. The latter problem made it difficult for the crew to determine where the compression burst had originated.The report added that the faulty equipment on the ship has made the crew lose its confidence that the Maersk Ngujima-Yin is a safe place to work.Maersk disagrees with much of the authoritys claims and has let the authority know about its dissatisfaction with the report.The Ngujima-Yin was repaired and out on the water...