Privateers not giving any income from blocked cities

It means they don't have any foreign trade. I think blockading only affects foreign trade routes or islnd ones. I don't think domestic trade routes are effected if they areon the same island because they can go by road to trade.
 
I'm not sure this is correct. I had a game where every civ but one had adopted mercantilism, severely disrupting my several coastal cities with custom houses, etc. I had naval superiority, and so started cranking out privateers to blockade for the pillage bonuses to help recover my economy. I have definitely seen privateers get pillage bonuses from civs adopting mercantilism on a large scale.
 
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