Piracy focus switches to Southeast Asia and West Africa

The problem of Somali pirates may have eased but growing attacks in Southeast Asia and West Africa are fuelling fresh worries for international trade, a new report has found.

The annual report by Oceans Beyond Piracy, an independent, non-profit organisation based in the United States, said losses caused by Somali pirates in the western Indian Ocean have come down in the past two years following intensified efforts such as joint military patrols and the use of armed guards.

Last year, the cost incurred as a result of pirate attacks amounted to US$2.2 billion to US$2.3 billion, compared with the peak of US$7 billion in 2010, when such costs were first assessed.

Human costs, measured by seafarers injured, killed or taken hostage, also continued to decline steadily to 205 people last year, compared with 606 in 2013 and 6,707 in 2010.

More than half, or 56 per cent, of the costs went into vessel protection measures, including deploying private armed guards on board, increasing sailing speed and rerouting to escape potential attacks, while US$805 million, or 36 per cent, were government and civil-society costs, such as naval patrolling and ransom payments. The remaining US$175 million, or 8 per cent of the total costs, went into insurance coverage and hazard pay - the additional salary for seafarers transiting dangerous areas.

But even as raids by Somali pirates have fallen off, a surge in cargo theft and armed robbery in the Gulf of Guinea and Southeast Asia over the past year is posing a serious threat to seaborne trade.