We had a similar situation in the US nuclear power industry a few years ago. Not exactly pirates but extortionists.

Anyone working at a nuclear power plant could file a complaint as a “whistleblower.” The costs to the plant owners and risks of a delay in issuing a license were enormous, whether or not the complaint had validity. Owners took to “settling” the issue for cash to the whistleblower and his legal team.

Of course, whistleblowing became a wide-spread industry.

The solution I proposed for our industry lobbying group as a response from my utility company was to ban payments to whistleblowers as private settlements on complaints before the Nuclear Regulatory Commission. Remove the incentive and the activity will decrease. Legitimate issues would be sorted through by bureaucrats.

Likewise, “the system” continues to reward pirates who hold hostages and ships. It just makes the problem worst by continuing the economic incentives.

As to adding weapons to merchant ships, I understand that the biggest cost would be the labor to maintain vigilance against the small boats. Labor costs are a big part of shipping costs and adding three or four crewmen as lookouts would be resisted by the owners.