Comment Re:Behold, a free market evangelists dream takes f (Score 4, Insightful) 666
It could be that it is cheaper just to wear the occasional losses.
Of course it is cheaper. The shipping companies take out insurance for this situation, and the pirates are careful to keep their demands high enough to make a profit, but low enough that they don't scare the ships away, or force the ships to take a different route or escalate the situation into an armed conflict with the west. It is a straight business decision.
NPR's Planet Money blog did a good podcast a while ago about how the pirating business operates.
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Simon