Disputes Over Who Pays Ransoms Put Crew Members at Risk

Disputes Over Who Pays Ransoms Put Crew Members at Risk

As pirates increasingly target cargo vessels in the Gulf of Aden, owners are struggling to pay escalating ransom demands — putting their crews at risk, an insurance executive told nearly 100 Korean ship owners and insurance brokers meeting here.

Jonathan Doherty, North Asia regional manager for the Chubb Group of Insurance Companies, noted that each year an average of 500 Korean ships pass through the Gulf of Aden, currently one of the most dangerous regions for piracy. In 2008, 111 ships, including Korean-owned or manned cargo vessels, were attacked by pirates in the Gulf of Aden, a 200% increase over 2007. Forty-two of those ships were held for ransom, and 889 crew members were taken hostage. Most ransom demands were between $1 million and $4 million per ship.

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Source: MSNBC