Posted on 11/06/2013 10:38:19 AM PST by 1rudeboy
A new study reveals how Somali piracy is financed
PIRACY remains a concern for ships passing the Horn of Africa, even though the number of incidents has plummeted since 2011, when armed protection was beefed up on board many large vessels. The topic grips the public imagination. Witness the success of “Captain Phillips”, a film in which a vessel captained by the actor Tom Hanks is hijacked by Somalis. Yet the pirate economy is poorly understood. A report*, to be released on November 4th by the World Bank, the UN and Interpol sheds new light.
The authors interviewed current and former pirates, their financial backers, government officials, middlemen and others. They estimate that between $339m and $413m was paid in ransoms off the Somali coast between 2005 and 2012. The average haul was $2.7m. Ordinary pirates usually get $30,000-75,000 each, with a bonus of up to $10,000 for the first man to board a ship and for those bringing their own weapon or ladder.
Qat, a narcotic plant that is chewed by many, is often provided to pirates on credit during an operation. Their consumption is recorded and, when the ransom is paid, each pirate gets his share, minus what he consumed.
Other deductions include food and fines for bad behaviour, such as mistreating the crew, which often carries a $5,000 fine and dismissal. This is in keeping with centuries-old pirate codes: John Phillips (no relation), an 18th-century pirate, was said to have stated that anyone who “meddled” with a woman without her consent “shall suffer present death”. Some pirates find it difficult to retire because they end up in debt at the end of a hijack. Part of the ransom money flows to local communities that provide services to pirates.
(Excerpt) Read more at economist.com ...
The Invisible Hook: The Hidden Economics of Pirates.
ping
I don’t understand how these shipping companies don’t find it cheaper to just hire armed security than pay these ransoms. It has to be cheaper.
I remember reading an article a few years ago how blackwater was going to get into the pirate protecting business by buying boats, outfighting them with weapons and then charge shipping companies a straight fee to convoy a whole bunch of them through the pirate infested areas. That sounded like a good idea.
Another area of the world that get’s less attention and I know at one time had greater piracy is through the straits of Molaka. When on ship and we went through there to get to the Indian Ocean, I can remember scores of commercial ships that used to tag along our convoy through the straights to get free protection from the U.S. Navy. They would literally wait at the mouth of the straits for Navy convoys.
A MOAB centered on each pirate ship after it returns to port would greatly discourage any popular support these scum enjoy from the scum on land.
Time to bring back the destroyer protected convoys.
Move the Tankers and Cargo Ships in a military Convoy on Weapons Free. That will end the Piracy.
We need Congressional letters of Marquee and Reprisals. Dangerous job convoying other ships while in tight waterways. One wrong turn and some country takes your ship and puts you in jail because you have weapons aboard. However with Marquee and Reprisals they operate under a somewhat limited protection via U.S diplomacy.
You can blame governments throughout the world for that. Governments want an exclusive on the ability to effective self defense. Therefore the DON'T want armed ships coming into their ports. My solution would have been to spend the rubles to get about half a dozen of these per large container ship (enough to cover all approaches with at least two) to and train the crew to operate them. But no makes too much sense.
Ho, ho...ho! Hold on. Let's keep this sophisticated.
‘Time to bring back the destroyer protected convoys.
“
We think alike.
Move the Tankers and Cargo Ships in a military Convoy on Weapons Free. That will end the Piracy.
Pirates should be publicly hanged in a Colosseum themed proceeding and the ports they sail from should be rendered uninhabitable.
I disagree. I believe it's time to do to Somalia what Rome did to Carthage to cure the Carthaginians of their habitual piracy of Roman shipping.
The average ransom is $2.7mm.
If you put two armed security guards on each vessel and you had 50 vessels, and you only paid them $30k a year, you just might break even.
But, realistically you'd have to pay more than that and probably staff more guys than that - and if just one security team failed, you'd be deep in the red on your security program.
The Somali pirates are very sophisticated. They have spies in the insurance and shipping companies to help figure out what ships to raid, and they have a stock exchange where folks can buy shares of the profits for equipping pirates, etc.
In a sane society, this would not do them any good, because their coast line would be scorched ruins, and their boats sunk, but for some screwy reason we don’t deal with pirates properly any more.
“we don’t deal with pirates properly any more”
or traitors
bonus of up to $10,000 for the first man to board a ship and for those bringing their own weapon or ladder.
= = = = = = = = = = =
Now that is how to plan a ‘low overhead’ business.
That would be like getting a job in a Pizza shop and have to supply your own oven - in order to qualify for a bonus.
In typical Union/Government fashion those that don’t bring ladders will be suing for extra money because those that bought their own ladders are given a ‘step up’.
Of course, that is the way it should be BUT the lawyers and unions will handle it.
In the article mention is made that the local mullah gets part of the cut. What is not mentioned is the religion of the Pirates themselves. Clue, it is not Christian.
Right, Christians would be called Privateers and operate with the consent of their government. Wait a minute! Why not just pay privateers to hunt down these pirates?
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