Renewed piracy off Somalia raises shipping costs, risks

Pirates

Armed Somali pirates prepare a skiff in Hobyo, northeastern Somalia, on January 4, 2010.

Photo credit: File

The resurgence of piracy off Somalia is driving up shipping costs, raising insurance premiums and threatening the safety of seafarers, maritime stakeholders have warned.

Industry players say the attacks are making it more expensive to transport goods through the Indian Ocean while complicating negotiations to secure the release of hijacked vessels and crews.