Ocean of Opportunity for Pirates

Modern-day bandits of the sea are on the rise - and it will cost every one of us dear.

BGN Risk has been published in The Financial Times, LA Times, Bloomberg News and The Scotsman today stating that piracy in the Gulf of Aden could increase insurance and transport costs by $400 million (£260 million). It said the special risks insurance levy for crossing the gulf had rocketed from $500 (£330) per voyage last year to $20,000.

Liam Morrissey, a Partner at BGN Risk, said: "This dramatic rise in piracy impacts the entire global supply chain by interrupting deliveries and escalating costs.

"Five Navy warships can't guarantee complete safety. Logistics in the area are difficult, and the ongoing regional instability creates challenges for private security firms.

"The alternative option of travelling the long way around Africa in safer waters adds a minimum of 20 days transit time, bringing associated increased costs in fuel, payroll and lost delivery time."