The 1,066-TEU Malaysian-flagged Albedo and its 23 crew of Pakistanis, Bangladeshis, Sri Lankans and Iranians have seized by pirates 900 nautical miles east of Somalia, reports Iran's Press TV

A regional maritime watchdog told Agence France-Presse that the ship was bound for Kenya from the United Arab Emirates. It had tried to avert the pirate-infested waters, sailing around the Seychelles, but was taken west off the Maldives in the Indian Ocean.

Noel Choong, head of the Kuala Lumpur-based International Maritime Bureau (IMB) Piracy Reporting Centre, also told AFP that the seized vessel had changed course and was now heading to Somalia.

"We believe the ship is heading towards the Somali coast. Naval forces are monitoring the hijacked ship," he said.

Mr Choong said the latest figures showed the pirates now held 23 vessels and 531 hostages.

He predicted that since the pirates scale the low risks of being caught against the large profits, "Piracy off Somali waters will flourish."

In 2008, Somali pirates hijacked two Malaysian-owned ships, but released the vessels following the usual ransom payoff which has turned piracy into a lucrative business for the sea bandits.

Apart from the European Union's mission, other countries have also deployed warships to patrol the region's waters.

But as the pirates continue to expand their operational zone, naval forces have failed to stem piracy off, and are being criticised for the growing number of attack on freighters.

More than 20,000 ships annually transit the Suez Canal but more and more shipping companies are considering alternate routes, said the report.