Rising piracy on Indian Ocean spells high insurance charges

A member of the Somali security forces guards the beach on the coast of Qaw, in Puntland last December. file photo | nmg

What you need to know:

  • Nine piracy attacks were recorded off Somalia in 2017, up from two in 2016, a new report shows, as global attacks dropped to a 22-year low.
  • The increase in such attacks usually comes with costs such as increased insurance premiums, longer freight routes as vessels avoid hot spots and additional cost of hiring private armed guards.

Cases of piracy in Indian Ocean off Somalia coast increased in 2017, raising fears that sustained attacks could raise insurance and freight costs for Kenya importers.

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