Budget PMSCs: A False Economy?

Further guidance on GUARDCON and the growth of “unscrupulous” Private Maritime Security Companies.

Notwithstanding the apparent decline of Somali Piracy, Naval threat assessments of the region suggest these numbers reflect a lack of opportunity as opposed to a diminution of the principle risk. This has been reinforced by the UN Security Council’s recent renewal of authorisation for international naval forces to join anti-piracy operations off the coast of Somalia.

Taking this into account the decline in attacks can partially be attributed to the routine use of Private Maritime Security Companies (PMSCs). This having effectively removed the “soft targets” traditionally favoured by Somali Pirate gangs.

However these positive developments are matched with the worrying increase in the use of unscrupulous PMSCs whose operating procedures fail to comply with the well-established legal and regulatory frameworks adopted by the industry. BIMCO advises “Reports of illegal weapon swapping have continued to increase and the misuse of manpower flies in the face of regulatory procedures including ISO 28007 -1:2015 and, where applicable, GUARDCON” . These developments highlight a clear division between properly accredited and bona fide PMSCs and those who trade regardless of international law and industry regulations.  

Although shipowners face considerable pressure to make savings in a difficult market, taking shortcuts with security potentially exposes shipowners to risks that could significantly outweigh any prospective savings.  

In order to assist shipowners BIMCO has reviewed and reinforced it’s guidance regarding Clause 10 of GUARDCON. In particular shipowners should ensure their appointed PMSC have the requisite End User Certificates (EUC), officially authorised by the competent government agency in the exporting country. These EUCs should then be verified by a vessel’s flag state before the flag states issues the letter of authority.

The consequences for shipowners being found to have unlicensed arms and ammunition on-board could be severe, with significant delays to the vessel, prolonged detention and potential implications to their P&I Cover being only a few of the possible ramifications.

BIMCO members can view the revised and reinforced guidance on GUARDCON by clicking here.

Daniel Mayne – Claims Executive
The North of England P&I Association limited