The rum is gone! The impact of maritime piracy on trade and transport
Despite having disappeared from the news since its peak in 2011, piracy continues to threaten maritime shipping. Combining firm-level customs data and ship position data with information on pirate attacks, this column sheds light on the dimensions along which piracy disrupts trade. It shows that exporting firms respond to piracy by switching from ocean to air shipping, while ships re-route in order to avoid affected regions. Despite these adjustments, total exports along affected routes decline.