Wave of Piracy
'Wave of piracy' could raise shipping costs by 150% over the coming years! A report by management consultancy AT Kearney and the Gulf Petrochemicals & Chemicals Association has warned that a renewed 'wave of piracy' could raise shipping costs by 150% over the coming years.This potentially disastrous scenario could come to be if the current situation is allowed to continue. The report suggests that "piracy containment" could be achieved by a greater use of naval forces and an increase in the engagement of private security teams. This form of escalation would, however, cost the shipping industry up to twice what it is currently spending on private security.The report also hints at a 'permanent solution', ergo the stabilisation of the Somali economy. Said solution envisages an end to overfishing off the coast of Somalia and alternatives to piracy. Neither of these goals would cost the shipping community.The scenario in which piracy would be entirely eliminated from the Horn would require an international effort that drew on a number of players and would be dependent on the active involvement of countries belonging to the Gulf Cooperation Council (GCC). Indeed the report cautioned that the role of GCC states would be critical.The report's ...
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