The cost of Somali piracy to the global economy in 2012 dropped 13 percent year-over-year to about $6 billion, as navies and private armed guards stepped up their presence to prevent attacks, according to One Earth Future Foundation, Bloomberg reports.
Hijackings dropped 50 percent, and attempted attacks decreased more than 70 percent, the organization said in its Oceans Beyond Piracy project report.
The study also showed that private security was the biggest source of costs, accounting for 29 percent. About half of ships in the region used armed guards in 2012, up from 30 percent in 2011, causing spending to almost triple to $1.53 billion, the nonprofit organization estimated. The report said that the industry is bearing more than 80 percent of the costs, with little investment in a permanent solution in Somalia.