2013-05-31

Cato: The Rise of Private Maritime Security Companies


The number of companies who have jumped into the deep blue sea to offer armed guards and other private security services for commercial shippers who fear pirate attacks has risen sharply the past few years. Many new companies have been formed in this area since 2008 and many existing PSCs have refocused on maritime security. Land based private security has vacillated between being called private military companies (PMC’s) or private security companies (PSC’s). All have been faced with media scrutiny, controversy and varying degrees of helpful and unhelpful legislation. Although the provision of lethal force by private services rather than government services neither new or even unexpected on land it seems to be more complicated on the ocean and in international waters.
Maritime security has existed to protect slow moving oil drilling equipment, private luxury yachts and even undersea cable laying projects. The industry was word of mouth, providers were known by their past clients and there was little demand by traditional shipping companies. The spike in attacks in 2008 forced ship owners and charterers to find ways to reduce risk and rapidly increasing “exception” insurance premiums for routes like the Gulf of Aden and a rapidly expanding piracy zone in the Indian Ocean.
The former military who provide security to ships in dangerous waters are called Privately Contracted Armed Security Personnel or PCASP. Many of these men are veterans of the contractor circuit in Iraq and Afghanistan. Somalia Report’s 2011 first-hand report provides a glimpse into this world of tedium interrupted by a few minutes of intense action. Somalia Report was the first news service to leak a State Dept document showing the pragmatic evolution of Secretary of State Hillary Clinton’s anti-contractor to pro-contractor stance as well as see first hand how this emerging sector actually works in Yemen and Somalia. It is clear that the industry is not only here to stay but will demand proper recognition of of PCASP’s role in keeping ship, crew and cargo safe.

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