China Will Pay Very High Ransom to Free Ship

This is worth keeping an eye on. Voice of America.

Somali pirates say they will release a Chinese cargo ship seized two months ago far off the coast of Somalia.

Pirates say they have reached agreement to receive a ransom of nearly $4 million, and will free the carrier De Xin Hai and its crew in the coming hours.

The 25 crewmen on board are said to be safe. The pirates initially threatened to kill the entire crew if China's navy attempted to rescue them.

Four million dollars is a very high ransom, indeed it would be one of the highest ransoms paid yet to Somalia pirates. Four million sets the bar high for the next ship from China that is captured, and may raise the expected ransom fees for everyone else currently held. The high ransom is curious, particularly when China could have held out for half that much. It sends a message that Chinese ships are worth big bucks when such a high ransom is paid. Keep in mind Super Tankers have only paid about $5 million in the past.

This is worth keeping an eye on. The reasons for paying a high ransom may not be obvious now, but may become obvious later.