robert wrote :
Because it has actually been more cost-effective to pay them than to try to stop the piracy in the region. For the shipping companies insurance is a better business decision than security unless the attacks increase (which they have dramatically this year).
They have thousands of ships passing through the region each year, very few are seized and the cost of paying the ransoms is less than the cost for them to put adequate security on each ship.
that about sums it up ,
shipping companies are competing with each other for cargo .
low cost operation is a must .
there is also the problem of "flag of convenience" .
the MAERSK ship recently captured is a ship operated by the american subsidiary of the DANISH maersk line .
it sailed under the flag of CYPRUS (i understand) "as a flag of convenience" ( to keep taxes and wage-costs down) and had a mixed crew under the command of a russian captain .
a/t news reports , it would be very difficult to sort out claims if the ship or any of the crew would be harmed during an act of piracy .
apparently , crew-members and their families might be able to sue maersk for negligent operation and ignoring the risks of resisting the pirates .
better pay the pirates and have no harm done than be sued .
maritime laws are even more complicated than laws applying to any individual country .
c.i. : do you ever read the "fine print" on the cruise contracts ?
let me know if you manage to decipher it .