Pirates continue to plague supply chains running through Somalia

Piracy attacks continue to haunt supply chains in northern Somalia, with no transparent plan yet on how to combat it.

The first three months of 2011 have seen 97 attacks on ships by Somali pirates, with oil tankers proving to be the most popular and expensive target.

These disruptions to supply chains are now forcing many ships to carry armed guards or to hire armed ships or escorts in an attempt to cut out the threat of piracy.

This additional security is said to be costing shipping companies over US$7 billion a year, and less than five per cent of this is for ransoms, highlighting the impact it is having on supply chains.

Efforts to train and arm a coast guard in Puntland and Somaliland have run into a lot of resistance from the UN, and some member nations. The problem is the corruption. The pirate gangs already have many Puntland officials on the payroll, and would bribe any anti-piracy force as well.

The issues are exacerbated by the difficulties of a solution, especially given most foreign aid efforts have been banned in this area, which is under the control of Al  Shabaab.

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