Alfred Thayer Mahan is credited as saying: “War is business, to which actual fighting is incidental.”
These words speak to the counter-piracy mission more than all others. Mahan’s modern counterparts agree: Dr. Martin Murphy, a piracy expert, prolific author and fellow at the Atlantic Council, refers to piracy as “trade’s dark double.” By mixing violence with trade, piracy transforms maritime security into a commodity. Now, a burgeoning privateer fleet is offering a competing product: a navy for hire.
A recent announcement by the Convoy Escort Programme, a private navy funded by insurers Jardine Lloyd Thompson and underwriter Ascot, declares that they will commence operating in the Gulf of Aden by the end of this year. While private security companies are nothing new, CEP represents a watershed moment in the struggle to align the benefits of trade with the responsibility for maintaining that trade. So long as pirates ply the seas, society can only choose the method it pays the costs they incur: either directly through ransoms paid to pirates, or indirectly through publicly financed navies or privateers. Standing navies only became common in the past few hundred years. Before that, societies relied on hired ships to secure their trade. CEP also represents a return to this historically dominant means of paying for security.
To date, the world has responded to Somali piracy primarily through a combination of ransoms and naval patrols. According to a report by the One Earth Future Foundation, $160 million in ransoms were paid in 2011 and they estimate the annual cost of the international naval presence in the Gulf of Aden at $1.27 billion. Adding in the cost of increased insurance premiums or the more circuitous and expensive routes ships use to avoid pirate threats, the Foundation estimates the total cost of Somali piracy at $7 billion – enough to give a new iPhone to every person in the state of Pennsylvania. Whatever the figure, maritime security in the Gulf of Aden has value, and at 70 million dollars, CEP’s navy represents a bargain compared to even one ship from the U.S. Navy.