Pirate Attacks Spur 36-Fold Increase in Ransoms: Freight Markets

Somali pirate attacks are increasing, spurred by a 36-fold jump in ransoms in five years, raising costs for shippers and the threat to vessels carrying 20 percent of world trade.

The raids are adding at least $2.4 billion to transport costs because vessels are being diverted onto longer routes to avoid attacks off east Africa, Louisville, Colorado-based One Earth Future Foundation estimates. Average ransom payments rose to $5.4 million last year, compared with $150,000 in 2005, the non-profit group says. Attacks off Somalia were the highest on record last year, with 49 vessels and 1,016 crew members hijacked, according to the International Maritime Bureau.