Glossary
Piracy Risk Surcharge (PRS)
Definition
The Piracy Risk Surcharge (PRS) is a fee imposed by shipping companies and carriers to cover the increased costs and potential risks associated with operating in areas prone to piracy and maritime crime.
— sennder Team
FAQ
The calculation of the Piracy Risk Surcharge varies among shipping companies and carriers, taking into account factors such as the level of risk, the route, the duration of exposure to high-risk areas, and the specific security measures employed.
Shippers may choose alternative routes that bypass high-risk areas, thereby avoiding the PRS. However, this may result in longer transit times and additional transportation costs.
Shipping companies can implement various security measures, including following recommended best management practices (BMP), maintaining a low profile, avoiding known piracy hotspots, and using security technology such as ship tracking systems and surveillance equipment.
Governments and international organizations collaborate to enhance maritime security, share intelligence, and develop joint counter-piracy operations. Initiatives such as the Combined Maritime Forces (CMF) and the European Union Naval Force (EUNAVFOR) contribute to the international efforts to combat piracy.
Example or usage in road freight logistics
A shipping company operating container vessels through the Gulf of Aden imposes a Piracy Risk Surcharge on their customers to cover the increased costs and risks associated with transiting this high-risk area.
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