SeaIntel: West African piracy may prove expensive for shipping companies

At the moment, container carriers spend USD 100 million on fighting piracy by having armed guards onboard ships. The expected escalation may increase the expenses by USD 80 million, SeaIntel writes in an analysis.

Each year, shipping companies spend USD 1.2 billion on anti-piracy measurements and of this amount, USD 100 million is spent on armed guards. This amount may increase in the years to come as the pirate threat may increase off the coast of West Africa, according to the latest SeaIntel Sunday Spotlight.

The level of piracy activity has been at a minimum during the summer. Presumably as a result of the monsoon’s effect on the activity level of the pirates and the widespread international efforts against piracy off the coast of Somalia. In spite of a lower level of activity of the pirates, shipping companies spend USD 100 million on armed guards each year. SeaIntel estimates that 90 routes go through high risk zones corresponding to a total of 180 potential pirate targets each week.

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