Modern Maritime Piracy: Risks and Impacts on Cargo Transportation

This bachelor thesis examines the issue of modern maritime piracy and its impact on cargo transportation. The aim is to identify the key risks associated with piracy attacks and analyse their financial and non-financial consequences for shipping companies. It also focuses on how these impacts influence companies' ESG ratings and what strategies can shipping companies adopt to mitigate the associated risks. The paper provides an overview of the current state of piracy, its geographical distribution and typology of attacks, contributing to a deeper understanding of this threat. Methodologically, it is based on a literature review, analysis of secondary data and case studies. The results show that piracy has complex impacts on shipping companies. From a financial perspective, direct costs were identified in the form of ransom payments, damage to cargo and vessels or post-incident crew care, and indirect costs in the form of increased insurance premiums, longer shipping routes and expenses for preventive measures. The impacts of piracy are also reflected in ESG performance, particularly through higher emissions or crew safety and qualification. The thesis further identifies a range of strategies to minimise these risks, including route changes, investment in ship security, spreading costs across actors in the supply chain or adjustments in governance. The findings confirm that effective risk management and the integration of sustainability principles are key factors for long-term competitiveness in maritime transport.