There have been about 20 pirate attacks off Somalia’s coast since November 2023.

There is a resurgence of piracy activities in Somali waters, which is threatening shipping operations in the Horn of Africa and the Gulf of Aden. Pirates have been hijacking fishing vessels and pleasure crafts, and using them as motherships to attack bigger merchant ships transiting the Somali waterways. There have been about 20 attempted pirate attacks off Somalia’s coast since November last year. Between November 2023 and March 2024, four ships (the Central Park, the Ruen, the Lila Norfolk, and the Abdullah) were seized by Somali pirates. The most recent one happened on March 12, 2024, when the Bangladeshi bulk carrier (the Abdullah) was taken captive in Somali waters just about 700 miles east of Mogadishu.

Four ships - the Central Park, the Ruen, the Lila Norfolk, and the Abdullah - were seized by pirates between November 2023 and March 2024 at the end of the quarter.

The return of Somali pirates has sparked concerns among international traders, shipping companies, and maritime authorities, with many of these incidents occurring off Puntland, a region historically associated with intense piracy. The highest number of pirate attacks in Somalia was recorded in 2011, peaking at 237 incidents. Regional and international navies, the European Union, and the US navies collaborated to fight Somali piracy, significantly reducing pirate activity in the region. However, as the threat declined over the years, participating countries withdrew their warships from the waters, which paved the way for a rebound in piracy.

While International naval patrols have successfully suppressed pirate activities in recent years, a decrease in regional disputes and political instability in Somalia also allowed pirates to regroup. The Israel-Hamas war in Gaza has created a perfect distraction for the raiders to reorganize and return after a decade of dormancy. Besides the pirate attacks, Yemen-based Houthi rebels are also attacking Israeli-linked vessels in the Red Sea and the Gulf of Aden. As of the writing of this report, the Houthis had released drones and missiles on three commercial vessels and a US ship in the Gulf of Aden. The attacks have impacted the flow of commodities that rely on the Gulf of Aden, the Red Sea, and the Horn of Africa routes to reach destination markets.

The heightened risk in Somali waterways has increased shipping costs, which adds more pressure on consumers. Commodity traders are now paying higher insurance premiums and must hire private armed security guards for safe passage. The situation has caused a significant surge in freight rates for sugar shipments from India and Brazil to East Africa and the Horn of Africa during 2024-Q1.

Container freight for a ton of Indian sugar to Djibouti and Somalia was USD 60 and USD 55 in March, a notable increase from 24 USD/ton in December 2023. Brazil’s freight to Djibouti went from USD 58 to USD 90 per ton, while Somalia witnessed a 155% surge to USD 85 per ton.

In addition, there has been a disruption in the supply chain as it takes longer to deliver the cargo, and vessels now have to take the alternative, longer route that is much safer. Somali waterways are one of the world’s key shipping lanes, and continued rerouting of ships requires more fuel for the vessel to cover the extra distance needed to reach its destination. Finally, traders risk losing their cargo and probably even incurring ransom if pirates capture their vessels.

Insightful links;

Kulea Quarterly Report - Read 2024-Q1 Africa Sugar Report.

Kulea Weekly Report - Download the report here.

CNBC - Somali Pirates are back on the attack.

BBC - Are we witnessing the return of piracy in Somali waters?