ABSTRACT
As a landlocked country, Uganda has to deal with ocean freight and port handling pipeline fees. Moreover, delays of oil deliveries cause serious petroleum supply bottlenecks, which is why Uganda’s security of oil supply is particularly vulnerable. An aggravating factor for delivery failures and resulting market consequences are attacks by pirates. For this reason, insurances for ships transiting the piracy area of the Gulf of Aden increased tremendously. For kidnap and ransom cover, to cite an example, shippers have to pay up to US$30,000 in premium for a US$3 million in coverage for one trip through the Gulf of Aden (Phillips 2009).
