It is known that COVID-19 has caused disruptions in global supply chains. As a result, cocaine smuggling has thrived with the increased use of commercial shipping, Skuld explained.
According to Ruby Hassan, Senior Claims Executive at Skuld, there has been a growth in shipment sizes while the organised criminal gangs (OGCs) behind them have become more inventive.
What is more a reduction in air traffic to Europe resulting from the COVID-19 restrictions would likely lead to an increase in direct cocaine shipments by sea from South America to Europe and increased shipments of cocaine to North America via Mexico.
Risk Intelligence documented that port operations in Central America, South America, and the Caribbean regions should be subject to rigorous precautionary measures and vigilance.
..Skuld marked.
Generally, larger ports are attractive transit points for smugglers because of the quick movement of products. Therefore, smuggling volume is roughly proportional with the size of the port.
However, Colombia, Ecuador, Peru, Mexico, Brazil, and Venezuela are considered particularly high-risk countries for the transit of cocaine. Whereby the Western Caribbean Vector is a particular route of concern from Barranquilla, Colombia to Altamira, Mexico where cocaine has been seized along this route in bulk carriers.
Potential implications for vessel owners, operators, and crew
As Ruby Hassan notes, when narcotics are discovered onboard, the consequences can rapidly escalate and become severe for both the vessel owner and crew. There may be resulting delays due to ongoing investigations by the authorities, which may take time and lead to the loss of hire and consequential claims from cargo interests.
The vessel may also be detained by the authorities, sometimes for an undefined period, with potential arrest and/or disembarkation of the crew for questioning and shore detention in prison if the crew is suspected to be complicit. A substantial fine may also be imposed and/or the vessel may be threatened with confiscation depending on the jurisdiction involved.
Vessel owners and operators are recommended to co-operate fully with any authority carrying out such investigation(s) irrespective of the jurisdiction. It is recommended that that clearly worded provisions are incorporated into the charterparties and bills of lading to ensure that disputes do not result from contractual ambiguities.
…Ruby Hassan concluded.