Reading The Invisible Hook really got me hooked on learning more about pirates.
How do pirates decide what ransom to ask for?
The answer, from an interview with an actual pirate, might surprise you. Despite what many think, they are very smart and intuitively grasp governance, incentives, and other aspects of human nature. This interview touches on incentives, reinforcement, moral hazard, and anchoring.
How do you pirates decide on what ransom to ask for?
Once you have a ship, it’s a win-win situation. We attack many ships everyday, but only a few are ever profitable. No one will come to the rescue of a third-world ship with an Indian or African crew, so we release them immediately. But if the ship is from Western country or with valuable cargo like oil, weapons or then its like winning a lottery jackpot. We begin asking a high price and then go down until we agree on a price.
How do you know a ship in far away coast in the first place and its flagship?
Often we know about a ship’s cargo, owners and port of origin before we even board it. That way we can price our demands based on its load. For those with very valuable cargo on board then we contact the media and publicize the capture and put pressure on the companies to negotiate for its release.
From what I’ve seen, initial demands tend to be about 10 times the previous publicized ransom, is this a rule of thumb?
We know that we won’t get our initial demands, but we use it as a starting point and negotiate downwards to our eventual target. But as a rule, yes, that’s about right.
Does the length of a hijacking change the ransom that pirates are willing to accept?
Yes. Armed men are expensive as are the laborers, accountants, cooks and khat suppliers on land. During long negotiations our men get tired and we need to rotate them out three times a week. Add to that the risk from navies attacking us and we can be convinced to lower our demands.
What are the key factors to making a successful attack on a ship?
The key to our success is that we are willing to die, and the crews are not. Beyond that, in my case deploy a boat with six men to get close to the ship and leave another in reserve near the coast just in case we need backup. We use sophisticated equipment that allows us to spot our targets from a distance. We always have to be close to the main sea lane and keep in touch with each other using talkie phones.
How much does it cost to outfit a pirate mission?
A single mission with 12 armed men and boats costs a little over $30,000. But a successful investor has to dispatch at least three or four missions to get lucky once.
How are the pirates organized? (Are there pirate leaders, financiers, and specialists?)
The financiers are the most important since they organize and plan the big shot operations and are able to pay running cost[s]. Financiers always need to forge deals with traders, land cruiser owners, translators, business people to keep the supplies flowing during operations and manage the logistics. There is a long supply chain involved in every hijacking.
Are there internal conflicts within the pirate gangs?
No. In piracy, everyones’ life depends on everyone else’s. There is some professional competition between groups, but we cooperate with information and logistics when it’s required. We won’t fight amongst ourselves as long as the money is paid as promised. We have never had any conflicts within my group.
Still curious? The Invisible Hook looks at legendary pirate captains like Blackbeard, Black Bart Roberts, and Calico Jack Rackam, and shows how pirates’ search for plunder led them to pioneer remarkable and forward-thinking practices.