Feral Jundi

This is good news for German private security companies and German shipping. With the blessing of their government, now they have a means of securing PSC’s to legally protect their country’s ships. The German shipping market is big as well, so this should lead to an increase of contracts for PSC’s in this market.

I also like the quote about the monopoly of the use of force. All I can say is Max Weber is rolling in his grave right now! lol

The government had until now always rejected such a solution, unwilling to give up the state’s monopoly on the use of legitimate force.

But seriously, this was the right move. If the state cannot provide that protection because of other commitments or a lack of government funding, then of course allowing private industry to contract with PSC’s is the next best thing.  The shipping companies can also choose the best company that meets their needs.

The other interesting quote was the study that was done on how many shipping companies had already contracted armed security:

Shipping firms have started taking matters into their own hands, with a study published last week by the consultancy firm PwC showing 27 German ships already carry armed security men on board, with a further six employing unarmed security operatives. Just 17 percent of the 100 firms questioned said they thought the ‘Atalanta’ mission added to safety in the pirate regions.
The Association of German Ship Owners (VDR) confirmed the move towards employing armed guards, but said it was only a second-best solution.

If just 27 ships out of this survey group of 100 have armed security, and that only 17 % thought the Atalanta task force mission of protection was successful, then do the math?  Not to mention an increase of attacks on German boats. The German PSC market should see pretty drastic growth now that the government is blessing this, and those companies positioned to be first movers on this market will do well. Did I mention that German ship owners control 3,500 ships, the world’s third largest fleet? Interesting stuff. –Matt

Ships turn to private security to fight pirates
July 21, 2011
German ships braving the waters off Somalia will now be able to officially employ private security firms to fight off attacks by pirates, after the government admitted it could not provide the protection itself.
State secretary in the economics ministry responsible for maritime affairs, Hans-Joachim Otto, said on Thursday that he could not answer the repeated calls from shipping companies for soldiers or armed police officers to accompany their boats.
“We don’t want desperadoes, so we are looking into a certification,” said Otto. He said security firms offering protection would have to meet certain standards. The government had until now always rejected such a solution, unwilling to give up the state’s monopoly on the use of legitimate force.
He said the number of pirate attacks on German ships had risen from 100 to 163 during the first half of 2011. The number of successful hijackings had dropped though, from 27 in the first half of 2010 to 21 in the first six months of this year.

State efforts to offer protection have not made much of a splash, with the European Union mission ‘Atalanta’ offering two operation teams – a German and an Estonian – but German ships alone undertake around 1,700 trips through pirate-infested areas each year.
The frigate Bayern left the marine base at Wilhelmshaven this Monday to take over the leadership of ‘Atalanta’ mission for four months.
Otto justified the decision to allow private firms to take on the work saying that money transports were routinely accompanied or even undertaken by such companies – no-one would expect a police team to be stationed at every bank.
Shipping firms have started taking matters into their own hands, with a study published last week by the consultancy firm PwC showing 27 German ships already carry armed security men on board, with a further six employing unarmed security operatives. Just 17 percent of the 100 firms questioned said they thought the ‘Atalanta’ mission added to safety in the pirate regions.
The Association of German Ship Owners (VDR) confirmed the move towards employing armed guards, but said it was only a second-best solution. International ocean law says that fighting piracy should be a matter for nations – armed forces fighting piracy should at least be under contract of a state.
“We would be happy to pay for it – it’s not about saving money,” said Max Johns, VDR spokesman, acknowledging that arming ships carried risks. “The pirates are constantly upgrading their weaponry – it could come to exchange of fire which could be very bloody,” he said.
The problem of pirate attacks has led to hugely increased insurance premiums for ship owners, as well as taking costly diversions and making increased investment in ship security – as well as difficulties in recruiting.
“Around 200,000 additional shipping personnel are needed, including 50,000 officers, just for those ships on the global register,” said PwC shipping transport expert Claus Brandt.
The outlook for German shipping firms was slowly improving, the PwC report said, as the world economy pulls itself back from the crash and trade increases. Around 48 percent of those asked said they expected increased turnover this year, while 29 percent said they expected stable results.
Story here.