This article needs to be updated.(December 2021) |
Piracy in Somalia has been a threat to international shipping since the beginning of the country's civil war in the early 1990s.[1] Since 2005, many international organizations have expressed concern over the rise in acts of piracy.[2][3] Piracy impeded the delivery of shipments and increased shipping expenses, costing an estimated $6.6 to $6.9 billion a year in global trade in 2011 according to Oceans Beyond Piracy (OBP).[4]
According to the German Institute for Economic Research (DIW), a veritable industry of profiteers also arose around the piracy. Insurance companies significantly increased their profits from the pirate attacks, as the firms hiked rate premiums in response.[5] Since 2013, piracy attacks have decreased in the region due mostly to patrolling by the navies of countries across the world, especially India, China and EU Navfor Operation Atalanta (a joint operation of numerous European navies).[6]