Amid a tight supply and demand situation, prices for private maritime security guards onboard have shot up dramatically this year, rekindling the era of Somalian piracy more than a decade ago. The disruption brought about by the Houthis’ campaign to target more than 70 merchant ships over the past five months has seen traffic slump by more than two-thirds in the Red Sea, but for vessels heading to the region armed guards have become necessary. The demand for extra security has also been bolstered by the sudden return of Somalian pirates who have started targeting ships and crews for hijack and ransoms. Rates for private security guards have shot up by as much as 60% this year, according to figures seen by Splash Extra with companies charging anywhere from $5,000 to $20,000 per three-day transit in and around the Red Sea and the Gulf of Aden. There is now wide variance on charges, depending on route, size and composition. This largely reflects the same wide arc of differing threat profiles and risk appetites. Private vessel protection rocketed in the early 2010s, when Somalian piracy disturbed the freedom of navigation of vessels transiting the vital chokepoint for international trade in the Indian Ocean. A study published last week by the Danish Institute for International Studies, funded by a grant from the Danish Ministry of Foreign Affairs, has argued that private maritime security companies (PMSCs) ought to face greater regulation, and that more needs to be done to share the cost burden of having these extra people onboard. “Clear guidelines need to be established on cost-sharing mechanisms for the engagement of PMSCs, including effectively balancing the financial burden between operators, charterers and, where possible, regional states,” the report stated. TagsSplash Extra Archive Splash Extra March 2024