Shipping companies are exposed to increased risk in specific areas of the world, such as the Gulf of Aden, due to piracy. These shipping companies see their costs increase due to this risk in the form of increased insurance premiums, and many also pay private security teams to accompany their vessels. Hence for the duration of the threat of piracy, a surcharge is levied in addition to the sea freight.This Piracy Risk Surcharge (PRS) is also referred to as the Gulf of Aden Surcharge.