Lucrative Piracy Business Thrives Off Somali Coast

Piracy represents a major source of income for the desert nation of Somalia, fragmented politically and lacking any central authority since the early 1990s. The nation on Africa’s eastern coast is desperately poor, with a per-capita GDP of $600. Poaching of fish stocks has stripped coastal waters, and years of conflict have left plenty of weapons in Somali hands. So some Somalis, armed with shoulder-launched missiles, board dinghies and fishing boats, race miles out to tankers and cargo ships passing by and threaten to fire unless ransoms are paid. Seven hijackings have been reported over the last two weeks, reports National Public Radio, including a Saudi tanker carrying $100 million in oil and a cargo ship from Hong Kong. Replacing a tanker alone, without its contents, could cost more than $150 million, and so shippers quickly pay the ransoms as a price of doing business in the dangerous waters. About one-tenth of the world’s petroleum supply passes through waters not far from Somalia, and navies from India and elsewhere are increasing patrols to secure the active shipping lanes. – YaleGlobal