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Write a term paper on how piracy has affected maritime and logistics and how cost associated with cargo loss and criminal activity hurts customers and end users.
How Piracy Has Affected Maritime And Logistics And How Cost Associated With Cargo Loss And Criminal Activity Hurts Customers And End Users
Length: 8 pages (2319 Words)
Port Operations and Piracy
Modern day piracy/terrorism is one of the key challenges facing water transport sector that has proved extremely difficult to eradicate as indicated by Chalk (2008). The shipment industry plays a crucial role in facilitating global trade as it involves the transportation of goods from one region to another via sea. However, for years the maritime industry has been under attack from pirates. Piracy, which involves hijacking of ships at sea by a group of individuals, rate has increased over the years in magnitude and frequency. The piracy plague is a global concern that was initially conducted by a group of disorganized fishermen but has now evolved into an organized crime carried out by armed individuals. Pirates’ activities are believed to be rampant in the Horn of Africa region originating from Somalia where the transgression is encouraged by the unstable Somalia government. However, recently research indicates that pirates have spread across the continent invading almost all sea roots. Piracy has several negative impacts on maritime and logistics sectors including their deterioration attributed to great losses from pirates’ malicious activities, its threat to human lives and increase cost in operating the business.
The ever increasing rate of maritime piracy is a huge setback for the maritime and logistics industries that is heavily dependent of transportation of goods using ships. Piracy seems to cripple the business in several ways as it hinders effective operations of maritime activities with time discouraging prospective ventures into the business. For instance, the capture of passenger ships as well as inhuman harassment of passengers aboard inconveniences travellers thus discouraging the activity. In addition, delay of cargo ships attributed to pirates’ vindictive activities consequently cripples the smooth running that may have serious consequences since they cause a delay in the delivery of goods thus interfering with logistics protocols raising doubts about the efficiency and reliability of the industry hence contributing to the loss of potential clients as people seek alternative ways (Willium & Pressly, 2013).