The One Earth Future Foundation recently published an assessment titled The Economic Cost of Somali Piracy 2011 by Anna Bowden and Shikha Basnet. It concluded that Somali piracy cost between $6.6 and $6.9 billion in 2011, down from a figure of $7 to $12 billion in 2010. The shipping industry bore over 80 percent of these costs. While there was an increase in pirate attacks, successful hijackings were down, in part as a result of a more aggressive response from military forces conducting anti-piracy missions in the region.
The report attributed the costs to ransoms, higher insurance, security equipment and guards, re-routing of ships, increased speed and burning of more fuel, compensation of kidnapped seafarers, prosecutions and imprisonment, military operations, and the creation of anti-piracy organizations.
For an earlier companion piece by Kaija Hurlburt, see The Human Cost of Somali Piracy.