What is a Piracy Risk Surcharge (PRS)?

A Piracy Risk Surcharge (PRS) is an extra charge that a shipping line adds to the ocean freight for voyages through waters where ships are at risk of piracy. It passes on to the cargo owner the higher cost of such a voyage, mainly higher insurance premiums for the vessel and extra security on board. Each line decides for itself whether to charge it, on which routes and how much, and usually quotes it per container on top of the base rate.

Why shipping lines charge it

A voyage through a high-risk area costs the shipowner more in several ways:

• Insurance: insurers charge additional premiums for vessels that enter waters they classify as high risk.
• Security: ships are hardened against boarding, follow best management practices for these waters and may carry security teams.
• Speed and routing: ships may cross the area at higher speed or take a longer route, which costs fuel and time.
• Crew: seafarers can be entitled to extra pay for high-risk transits.

Because these costs depend on the route, the current threat and the insurer, the surcharge changes over time and can be introduced, raised or dropped at short notice. Some lines fold it into a broader war risk or security surcharge rather than listing it separately.

Where piracy risk is highest

The ICC International Maritime Bureau (IMB) recorded 137 incidents of piracy and armed robbery against ships worldwide in 2025, up from 116 in 2024. Most were low-level. The Singapore Straits had the most reports, with 80 incidents. In the Gulf of Guinea, 21 incidents were reported, and 23 crew members were kidnapped in four incidents. Off the Somali coast only a few incidents were reported, but two attacks in November 2025 took place far from shore, which shows that Somali pirate groups can still operate at range.

PRS on a quote and on the road leg

On a sea freight quote the PRS appears as its own line, next to items such as the bunker surcharge, and it applies per container, so a full container load pays it once for the whole box. Who bears it depends on what delivery term seller and buyer agreed: whoever books the main sea carriage normally pays its surcharges.

The surcharge itself does not apply to the truck, but the voyage behind it can affect the road leg. A ship that slows down, waits for an escort or takes a longer route arrives later than planned, so the truck booked for the original arrival date has to be rebooked and the delivery slot at the consignee moved. For a forwarder that sells the whole chain, the PRS is one more line to check on the carrier's invoice before passing it on to the customer.