The standoff continues between Somalian pirates aboard the Ukranian Faina.  It seems the $20 million being demanded for return of the ship is 10 times what is normally requested of vessels. In addition to the Russian frigate there are half a dozen US warships keeping watch, with aims to prevent any of the tanks or other armaments being taken onshore.  This situation has been cited by a number of sources (see below) for pushing upward shipping costs, such as insurance.

Professor of Politics and International Studies and the Chair of Security, Terrorism and Counter-Terrorism Studies at Murdoch University, Sam Makinda has stated that:

According to shipping industry sources, insurance costs for ships plying the area have increased tenfold in the past few years, and some insurers have created an underwriting speciality devoted to Somalia.

Makinda also points out how the Straits of Malacca in recent years was more dangerous a region than waters off Africa but this has now changed.  Catherine Zara Raymond has also typefied pirates in Southeast Asia versus those in Africa (from memory she discusses it in this video) – with the former ‘type’ being less violent or inclined to killing crew on boarded ships compared to the latter.

Apparantly however the Somali government has given ‘foreign powers a blank cheque’ to use force against the pirates.  It will certainly be interesting to see how this situation resolves itself, and what, if any, cooperation occurs between the former Cold War antagonists.