Piracy is a global problem and poses a serious risk to seafarers and cargo from Africa to Southeast Asia and South America. The Gulf of Aden and the Somali coast are current hot-spots, where there have been an increasing number of piracy incidents in recent years, culminating in 111 incidents and 44 hijackings during 2008 (source: IMB*). Whilst certain vessel types have proven more susceptible to attack the range of ships being targeted has increased, broadening the threat.

Pirates have become more sophisticated, particularly in the Gulf of Aden and Nigeria, where militants and pirates
regularly attack commercial vessels with a level of determination and skill well beyond that of opportunistic thieves. Nigerian pirates cause regular loss of life and are involved in the theft of oil, cargo and the hijacking of vessels. Somali pirates are widening their area of operations and are consistently hijacking vessels; both problems are showing no signs of coming to an immediate end.

Once a vessel has been captured the stakes are raised by increasingly intricate ransom demands with pirates demanding larger sums of money to release both vessels and crews.

The average amount paid for the release of a vessel and its crew in 2008 was US$1.2 million in Somalia* alone – higher profile cases have cost significantly more. This new source of income allows the pirate community to invest in higher quality boats, weapons and equipment. Many ship owners have found that they have not got the experience to deal with the constantly evolving nature of pirate negotiations and the sums of money involved.

* International Maritime Bureau Annual Piracy Report 2008.