There is an increased risk of Somali-based piracy this year as the conditions that led to a rise in piracy between 2005 and 2012 have been recreated in parts of the east African country.
Market analyst IHS pointed out in its Country Risk report for 2016 that a lack of alternative economic opportunities in the Galmudug region of central Somalia led the local politicians to provide safe havens for hijacked ships to be stored during lengthy ransom negotiations.
To further compound the problem, about 60% of commercial shipping lines travelling through this historic piracy zone no longer carry privately contracted armed security personnel (PCASP) on board due to the costs involved and perception that piracy is not a significant risk, says Keerti Rajan, head of political risk analysis at IHS Country Risk.
“This means that Somali pirates, who still have the technical capabilities, manpower, weaponry and financing networks to organise deep-water hijacks, may soon regain the secure ship-storage locations required to resume operations.”
