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Ship piracy insurance skyrocketing

Overseas reports show insurance costs for merchant ships navigating the piracy-prone area around Somalia have risen significantly as yet more ships are hijacked.

Marine insurance brokers have told US media that those on voyages to Somalia pay additional premiums of between 5-10% per call.

US analysts have told a seminar at think tank the Heritage Foundation the rapid surge in piracy off Somalia is unlikely to ease in the foreseeable future and may even rise further.

A Yemeni ship loaded with steel was hijacked last week, making it the latest in a score of attacks on ships being held for ransom by Somali pirates.

Pirates are apparently demanding $US15 million ($22.8 million) for a Saudi supertanker carrying $US100 million ($152 million) worth of oil seized on November 15, the biggest hijacking recorded at sea.

Companies are now diverting their ships to avoid the piracy prone area of the Gulf of Aden.

Meanwhile a so-called pirate ship blown up by Indian warship INS Tabar has turned out to be a deep-sea trawler, according to US reports.