In its recently published annual piracy report for 2017, OBP noted an overall increase in piracy incidents across the globe. Analyzing the financial impact of piracy throughout the year, the report estimated the cost of piracy in East Africa at $1.4 billion, in West Africa $818.1 billion, while the total worth of goods stolen in Asia at $6.3 billion and in Latin America and the Caribbean at $949,000 dollars.
East Africa
- The total cost of Somali piracy remains within the historical norm of the past three years.
- 13% decrease in the use of privately contracted armed security personnel between January 2015 and December 2017.
- The cost of International Naval Activities amounted $199,357,575. OBP’s calculation also included $344,962, attributed to the organization of Shared Awareness and De-Confliction (SHADE) conferences.
- OBP’s estimated cost for Ship Protection Measures (SPMs) for 2017 is $6.8 million.
- OBP estimates the cost of Embarked Contracted Maritime Security at $292,463,537 for 2017.
- The cost of increased speeding in 2017 was $758,707,277.
- OBP’s calculations for prosecution and imprisonment related to acts of piracy and armed robbery in East Africa spanned four regions. In total, the cost of prosectution and imprisonment in 2017 is estimated at $6,240,434.40.
- Assuming that the Western Indian Ocean Listed Region (WIOR) accounted for 50% of all War Risk Area premiums in 2017 and that the change in net premiums from 2016 was negative 30%, the additional premiums paid by ships transiting the WIOR Listed Area totaled around $41.6 million.
- A significant number of ship operators take out kidnap and ransom (K&R) insurance as additional protection for the ship’s crew. OBP estimates that in 2017, approximately 12% of all ships transiting the HRA bought K&R insurance at a total cost of nine million dollars.
West Africa
- The total cost in West Africa continues to rise, up from $793.7 million in 2016.
- OBP found that spending on coastal state embarked personnel decreased to $213.7 million.
- Regional spending on law enforcement and naval patrols increased by $13.2 million in 2017.
- Ghana, Togo, Benin, and Nigeria have each established “secure zones” near major ports. OBP estimates that operating these zones cost $9.3
million in 2017. - OBP estimates the cost of information sharing and coordination centers in West Africa to be $2,928,105.
- Assuming that the Gulf of Guinea accounted for 15% of all War Risk Area Premiums in 2017, and that the change in net premiums was negative 5%, the total cost of additional premiums incurred by ships transiting the Gulf of Guinea Listed Area in 2017 was $18.5 million.
- In addition to war risk insurance premiums, a number of ship operators take out K&R insurance as additional protection for their ship’s crew. OBP estimates that in 2017 approximately 35% of all ships transiting the Gulf of Guinea Listed Area carried this insurance, at a cost totaling $20.7 million.
Asia
- As with previous reports, OBP was limited in its ability to calculate an economic figure due to the complexity of shipping patterns and the difficulty in isolating dedicated counter-piracy patrols of regional naval and law enforcement agencies.
- Kidnap-for-ransom incidents in Asia decreased by 80%, in large part due to the effective cooperation by regional law enforcement actors.
- The value of stolen ship stores, crew belongings, and cargo is estimated at $6.3 million, up from $4.5 million in 2016.
- 62 incidents occurred at anchor, in part explaining the increase in value of stolen goods.
- To help protect ships transiting the Moro Gulf, the Philippine Coast Guard deployed 16 sea marshals in Central Visayas to escort six commercial ships each month between Mindanao and Cebu. The average cost per embarkation for a four-day roundtrip in the Philippines is between $13,000 and $15,000, with an added $400-$500 for every additional day that the transit takes.
Latin America and the Caribbean
As with last year’s State of Maritime Piracy report, OBP did not calculate a total economic cost for piracy and armed robbery in Latin America and the Caribbean. However, OBP did calculate the value of stolen ship stores and crew belongings. Ship stores were stolen in 41 incidents and crew belongings were reported stolen on 18 occasions in 2017. In total, roughly $949,000 dollars’ worth of goods were stolen in 2017.
