In: Economics
The Suez shipping route is one of the most active routes used by commercial ships. Yet, these dangerous waters pose a major threat (of theft and kidnapping) to commercial sailors and the goods they transport. For the purpose of the question, assume that ships have to go through the Suez route and may not avoid it. What should shipping companies do to adapt to this threat? Present at least two things that could be done to reduce the piracy and kidnapping risk?.
Ships have to go through the Suez route and can't avoid it. Shipping companies should insure their cargo so that they are reimbursed in order to adapt themselves to this threat.
They should also install fire hoses, water spray and foam monitors in order to provide a sense of physical defense. Physical barriers such as Razor wires, alarms and maneuvering should be installed by ships in order to protect the cargo as much as possible and avoid the risk.
There should be some form of security with weapons onboard the ships because pirates do have weapons and can shoot from afar. Bridge windows should have blast resistant films.