Somali pirates were just paid $9.5M for relinquishing the Samho Dream, a South Korean oil tanker that was capture in April and carrying $170M in crude oil from Iraq to the U.S. Pirates also received nearly $2.8M the same day for the Golden Blessing, a Singaporean flagged ship.
"We are now counting our cash," a pirate who gave his name as Hussein told Reuters news agency. "Soon we shall get down from the ship."
This high payout is very worrisome - there are at least 25 more ships currently being held by pirates. Ship hijackings hit an all time high in 2010, and it is little wonder why with countries paying these exorbitant ransom demands. Saudi Arabia paid at least $20M in May for the return of one if their oil supertankers.
There are 5 separate pirating groups in the region with over 1,000 actors, primarily consisting of fisherman. As their fishing livelihood in the Gulf was affected by increased pollution from passing ships, fisherman started the pirate trade as way to lash out against foreign ships and to raise capital. They were soon joined by ex-militiamen who were previously employed by clan warlords. They recruited some technical specialists for communications and GPS support.
The people of Somalia aren't necessarily against the pirating, as the money is an influx into their weak local economies. Business is booming - since January, pirates successfully boarded 43 ships with several events terminated by the host country paying ransom, others in gun battles with U.S. and other warships in the region. Ship have been sunk, pirates killed, hostages rescued. It is an active, ongoing operation - and it is driving shipping costs up in the region and affecting charitable activities such as the U.N.'s World Food program - over 90% of their ships have to traverse the dangerous region and do so with heavy escort.
So far, the pirate attacks have been centered around ransom. However, some reports have the terrorist group al Shabaab (a al Qaeda affiliate) exacting profits from this activity. If countries pay ransom to the pirates, they should know that a portion of the money could very well be going towards the funding of al Qaeda attacks against the United States. Al Shabaab has already tried to strike in our borders and is actively recruiting Americans through the use of You Tube and Facebook
It is obvious the pirates don't care about the cargo on board, as they've seized vessels with $170M in crude oil or nearly worthless shipments of chains. A UN resolution concerning payout to hijackers would help so that countries don't independently feed the pirate's growing appetite for cash which may be going to al Shabaab.
Now that the pirates have perfected their trade, more nefarious actors could step in and ask their assistance, paying millions up front for a capture operation. A large ship, at full speed, could do an incredible amount of damage to important ports in the region. The jury is out as to whether an oil tanker, rigged with explosives, would explode if used as a incendiary device in a port, but perhaps it is possible.
As always, we can't just focus on how the bad guys are operating today - we need to think asymmetrically and get on the offensive in order to prevent future, perhaps catastrophic attacks.