The Impact of Piracy Activities on Maritime Economy: A Global Assessment

Abstract

This study aims to examine the multifaceted effects of piracy activities on the maritime economy. Since approximately 90 per cent of global trade is carried out by sea, piracy is not only a security threat for ships and crews; it has also become a serious problem with social and economic repercussions. The study analyses the historical development of piracy, its areas of activity and its direct and indirect effects on the maritime sector. These include increased insurance premiums, fuel and time losses due to route changes, ransom payments and increased security expenditures. In addition, international legal frameworks, regional cooperation mechanisms and technological strategies in combating piracy are analysed and policy recommendations are provided to ensure the sustainability of maritime trade.

Keywords

• Piracy
• Maritime Economics
• Insurance Costs
• International Trade
• Risk Management

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