Ransom on the High Seas Essay example

1107 Words May 20th, 2014 5 Pages
Ransom on the High Seas: The case of Piracy in Somalia

The pirates in the coast of Somalia came to activity at the start of 2003. The main reason that provoked local Somalis to start attacking foreign cargo ships was the civil war that broke out in 1991. The Somali Civil War leads to an unstable government that lacked on authority, leadership and control to stop the rising attacks between local groups. From there, Somalia went on downhill; its population decreased over two thirds from 1991 to 2011 and by 2008, the United Nations estimated that nearly 3.2 million Somalis were dependent on food aid for survival. These pirates had nothing to live fro before attacking the ships.

They started hijacking the ships in look of money and
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This third option is probably the biggest risk for ISC: if they allow the Seal to carry out their operations, most probably a couple of workers will get killed. The problem is not that to this point, is the amount that get killed as each body has a price of more than one million dollars to the company. So to what extent the amount that they would have to pay for the looses of workers greater or less than the amount they would have paid if the negotiation was carried out.

His last option was to try and capture the leader pirate and use it as leverage. Clearly this option is the worse one to pick as the chances of actually capturing the pirate without getting anyone hurt are probably minuscular.

Out of the four options that Martin had to pick on how to act against these pirates, either breaking their policy of no negotiation and try pay for all the lives and ship or allow the Seal team to deal with this and hope for the best. There are great possible costs on both sides and chances of coming out victorious on both.

Companies that sail around dangerous water must implement some type of method to avoid pirates and loss of money or crewmembers. Possible ideas are either the introduction of security teams on board to make sure no one takes over it. This is clearly going to be an extra high cost for the company, but it is better than having to face this type of problems unexpectedly. As stated on the case study, the United

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