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Maritime Piracy: Trends and Future Developments A Review

Author

Listed:
  • George Samiotis
  • Vasileia Psarrou
  • Michalis Pazarzis
  • Vasilis Tselentis
  • Georgios Dafnos

Abstract

Maritime piracy has evolved into a modern and organized form of highly profitable criminal "business" activity with increasing direct and collateral costs, over the past years. Although piracy is a worldwide phenomenon (West Africa, Indonesia and the Philippines), Somalia is by far the world leader. As of 29 July 2012, Somali pirates are still holding at least 11 vessels and 174 crew members. In 2011, pirates earned $146m (£93m), an average of $4.87m (£3m) per ship, from ransom paid by shipping firms. An estimated 3,000 to 5,000 pirates operate and although 1,000 have been captured and about 25 military vessels - from the EU and NATO countries, the US, China, Russia, India and Japan - patrol approximately 8.3m sq km of ocean ranging from as far south as Madagascar covering the coast of Somalia extending to Oman and the Gulf of Aden, the phenomenon is a serious threat to maritime transport affecting both shipping companies as well as the crews manning this industry. The paper analyzes available statistics highlighting the type of vessels and the flags that seem to be more vulnerable to high jacking and kidnapping and discusses the effectiveness of measures introduced [exclusion zones, USN-NAVEUR and EUNAVFOR activity, the use of Private Maritime Security Companies (PMSC), etc.] over the past 7 years. Furthermore, the paper attempts to link issues relating to the socioeconomic and political situation in the countries offering pirates a base to operate, reaching the conclusion that piracy cannot be eliminated solely with force oriented initiatives without addressing its root causes which are political instability, endemic poverty and the lack of social and economic safety and security. Finally, the paper stresses the humanitarian aspects relevant to the seafarers trading around the world and especially in the Indian Ocean, who often face violence and kidnap, brutal treatment, abuse, torture and lately, most regrettably, several fatalities.

Suggested Citation

  • George Samiotis & Vasileia Psarrou & Michalis Pazarzis & Vasilis Tselentis & Georgios Dafnos, 2013. "Maritime Piracy: Trends and Future Developments A Review," International Journal of Maritime, Trade & Economic Issues (IJMTEI), International Journal of Maritime, Trade & Economic Issues (IJMTEI), vol. 0(1), pages 93-108.
  • Handle: RePEc:ers:ijmtei:v:i:y:2013:i:1:p:93-108
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    References listed on IDEAS

    as
    1. Maximo Mejia & Pierre Cariou & Francois-Charles Wolff, 2009. "Is maritime piracy random?," Applied Economics Letters, Taylor & Francis Journals, vol. 16(9), pages 891-895.
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    More about this item

    Keywords

    Maritime piracy; economic cost; awareness; security; safety; Somalia;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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