How do the Somali pirates make money?

As a maritime security expert with extensive experience in the analysis of piracy trends and countermeasures, I can provide an in-depth understanding of how Somali pirates historically operated and made money. It's important to note that piracy is a criminal activity and discussing it is for educational purposes only, to better understand and combat this issue. **Step 1: The Business Model of Somali Pirates** The Somali pirates' business model was primarily based on hijacking ships and holding them for ransom. The process typically involved several stages: 1. Target Selection: Pirates would identify vulnerable targets, often cargo ships or vessels carrying valuable goods. 2. Attack: Using speedboats and sometimes mother ships, pirates would approach the targeted vessel, often using暴力 (violence) or threats to overpower the crew. 3. Capture: Once control was established, the pirates would take the ship and its crew hostage. 4. Ransom Negotiation: The pirates would then demand a ransom from the ship's owners in exchange for the release of the ship and crew. 5. Payment and Release: If a ransom was agreed upon and paid, the pirates would release the ship and its crew. Economic Analysis According to estimates, between 2005 and 2012, the owners of 179 ships hijacked by Somali pirates paid out ransoms totaling between $339 million and $413 million. This equates to an average payment per vessel of around $2.3 million. However, it's crucial to understand that the pirates themselves often received a very small fraction of these ransoms. Reports suggest that the pirates might have earned less than 0.1 percent of the total ransom amount. Factors Influencing Earnings Several factors influenced the earnings of Somali pirates: - Risk and Cost: The operation itself was risky and costly, involving the investment in boats, weapons, and the logistics of the hijacking. - Division of Profits: There was often a hierarchy within pirate groups, with leaders and financiers taking a significant cut of the ransom. - Local Economy and Infrastructure: The pirates were operating in a region with limited economic opportunities, and the money they did receive was often spent quickly or used to fund further criminal activities. - Intervention and Countermeasures: Over time, international naval patrols and anti-piracy measures reduced the success rate of pirate attacks, which in turn affected their income. Consequences and Impact The activities of Somali pirates had significant economic and humanitarian consequences: - Economic Losses: The shipping industry incurred substantial costs due to increased insurance premiums, rerouting of ships, and the loss of cargo and ships. - Humanitarian Concerns: The crews of hijacked ships often faced harsh conditions and were at risk of abuse or injury. - Regional Stability: Piracy threatened the security and stability of the region, affecting trade and the livelihoods of those who depended on it. Current Status It's worth noting that the peak of Somali piracy was in the late 2000s to early 2010s. Since then, concerted international efforts, including naval patrols and the prosecution of pirates, have significantly reduced the incidence of piracy off the coast of Somalia. Conclusion While the business model of Somali pirates was initially lucrative, it was also highly risky and faced significant challenges. The small percentage of ransoms that pirates received highlights the complex dynamics of this criminal enterprise and the need for a multifaceted approach to combat piracy.

They estimate that the owners of 179 ships hijacked between 2005 and 2012 paid out ransoms totaling between $339 million and $413 million, or an average payment per vessel of around $2.3 million. ... Pirates themselves benefitted little, often earning --less than 0.1 percent" of the ransom.Nov 6, 2013