The Economic and Human Cost of Piracy

• Overall cost of Somali piracy is down around 50%from 2012.
• Attacks carried out by Somalia-based pirates continuedmulti-year decline; only 23 vessels were attacked.However, regional seafarers still at high risk.
• The international community spent an estimated $139.1million to deter each attack that took place in 2013.
• Despite significant progress in the fight against Somalipiracy, the remaining 54 hostages have been held foran average of almost 3 years.

• OBP estimates 100 total piracy attacks in 2013
• The study indicates a shift in 2013 towards more kidnapfor ransom attempts and a slight decline in oil theft attacks.
• West African piracy is more closely linked, and harder todifferentiate, from other types of maritime crime andcriminal activity ashore than Somali-based piracy.
• Piracy reporting and information sharing is largelyuncoordinated in the Gulf of Guinea, which could hide thetrue magnitude of the crimes.

Economic Cost Highlights

1. Ransom costs are suspected tobe higher, but lack ofreporting precludes fullaccounting of ransom andrecovery costs.
2. Military Operational costsindicate regional Navyexpenditures – internationalnavies are not organized forcontinuous deterrence andresponse operations in theGulf of Guinea.
3. Private security costs arepredominately associated withregionally contracted teamsfrom West African nations.

Human Cost Highlights

1. Attacks in West Africa in 2013 were much morefrequent than those by Somali pirates.
2. Attacks in the Gulf of Guinea are more violent thanattacks in East Africa.
3. Longer term affects on seafarers subjected toviolence is hard to determine based on a lack ofreporting and assessment.