Somali pirates reject $300,000 ransom, signal high costs for shippers

A Chinese fishing vessel hijacked by Somali pirates in 2008. 

Photo credit: File | Reuters

Suspected pirates holding a Chinese vessel with 18 crew members have turned down $300,000 ransom offer, signalling an imminent increase in marine insurance premiums.

According to sources familiar with the negotiations, the vessel is being used by the attackers as a mothership to assail other vessels. The pirates rejected the offer, which was made through elders in Somalia and an intricate network of international security organisations.