Piracy’s Impact on Trade

The changes in tactics of pirates have been a subject of constant review by International shipping community. The general understanding is that pirates are forever looking for ‘soft targets’ and newer techniques for extending their reach. Earlier pirate activities were mainly concentrated in the Gulf of Aden. However, due to increased military (Naval) presence in the area, incidents of piracy are now reported more eastward in the Arabian seas. Pirates have also started using captured merchant ships as ‘mother ships’ to launch attacks far away from the Somalia coast.

On account of extension of ‘high risk area’ from earlier 65 degree East to 78 degree East (up to the outer limit of territorial waters of India), the cost of insurance for trading in the Arabian seas has generally gone up.

Government of India has drawn attention to the problem of piracy and hostage taking off the Coast of Somalia and called for urgent and collaborative international counter-piracy measures in the meetings of the United Nations Security Council, International Maritime Organisation (IMO) and the Contact Group on Piracy off the Coast of Somalia (CGPCS). 

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