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Ocean of Opportunity for Pirates

BGN Risk has been published in The Financial Times, LA Times, Bloomberg News and The Scotsman today stating that piracy in the Gulf of Aden could increase insurance and transport costs by $400 million (£260 million). It said the special risks insurance levy for crossing the gulf had rocketed from $500 (£330) per voyage last year to $20,000.

Liam Morrissey, a Partner at BGN Risk, said: "This dramatic rise in piracy impacts the entire global supply chain by interrupting deliveries and escalating costs.

"Five Navy warships can't guarantee complete safety. Logistics in the area are difficult, and the ongoing regional instability creates challenges for private security firms.

"The alternative option of travelling the long way around Africa in safer waters adds a minimum of 20 days transit time, bringing associated increased costs in fuel, payroll and lost delivery time."

Julie Palmer

About the author

Julie Palmer

Regional Managing Partner

Meet our Team of Experts

Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.

Julie is a member of the Insolvency Practitioners Association and the None Administrative Receivers Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

Advice You Can Trust

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland