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Piracy threat may lead to higher shipping rates, lawmaker says
Bloomberg
Page 19
2009-02-09 12:20 AM
The growing threat of pirate attacks in regions such as the Gulf of Aden may disrupt global commerce and lead to higher shipping rates, U.S. lawmakers said.

Piracy also could lead to higher prices for commodities such as food and fuel, Representative James Oberstar, a Minnesota Democrat, said today at a hearing.

The U.S. and other countries are stepping up efforts to combat brigands off the coast of Somalia, and the shipping industry is taking steps to defend vessels from potential attacks, said Oberstar, who heads the House Transportation and Infrastructure Committee.

"However, there are some companies that have not taken any safety measures to ensure the safety of their crews, the cargoes or their vessels," Oberstar said.

Of the 49 ships that were hijacked worldwide last year, 42 were hijacked by Somali pirates who held 815 crewmembers hostage.

 
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