ABSTRACT

Economic Impact of Piracy in the Gulf of Aden on Global Trade   [open pdf - 186KB]

This U.S. Department of Transportation/U.S. Maritime Administration circular discusses the economic impact of the piracy in the Gulf of Aden. This report also includes a related table. The following is taken from the report: "Over 80 percent of international maritime trade moving through the Gulf of Aden is with Europe. Although those economies are currently more directly affected by the attacks, piracy poses significant burdens on governments and the maritime industry as they take steps to protect themselves from being attacked or hijacked. These actions may include a larger military presence in high-risk areas, rerouting ships to bypass the Gulf of Aden, paying higher insurance premiums, hiring private security guards, and installing non-lethal deterrent equipment. Ultimately, the costs of these actions are passed along to the tax payer and the consumer. The carrier has basically two courses of action against piracy in the Gulf of Aden: Avoiding the area by rerouting vessels via the Cape of Good Hope, or accepting the risk of operating ships through the area by enhancing vessel security. Rerouting may be a viable option for lower value cargoes, such as some bulk commodities. However, for high value consumer goods or items needed for just-in-time manufacturing, the added delay may be unacceptable to the shipper."

Publisher:
Copyright:
Public Domain
Retrieved From:
U.S. Maritime Administration: http://www.marad.dot.gov/index.htm
Format:
pdf
Media Type:
application/pdf
URL:
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