Gulf of Aden Surcharge ( GAC )

Ships of any kind are exposed to increased risk in the Gulf of Aden, due to piracy. As such shipping companies see their costs increase due to increased insurance premiums and in some cases the cost of hiring private protection agencies to keep their crews safe. Hence a surcharge is levied ion top of the seafreight. This Piracy Risk is also referred to as the Gulf of Aden Surcharge.