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MARINE | DRUG TRAFFICKING In association with North P&I Club
Ships are attractive to drug traffickers. Security is generally lighter than the airline industry and they travel the world. Smuggling by sea has been a problem for years, but, in recent years there have been some high-profile cases and evidence that the methods used are constantly evolving. Mark Smith, North P&I Club’s Loss Prevention Executive , explores this evolving challenge and ways to tackle this big problem.
Focus on loss prevention to crack
drug smuggling As ever, we seem to be playing catchup with the criminals. They have good reason to stay one step ahead and to keep innovating – there is big money involved. Conservative estimates suggest that currently the annual illicit drug market is worth over $400bn. Cocaine, for example, is cheaper to produce in Colombia per gram than coffee. It is essentially a low-cost, high-risk and potentially high-reward business model.
RECENT BUSTS Drug finds on vessels have hit the news in 2019. Recent cases include a ton of cocaine found in a shipping container that was loaded in South America and bound for Europe. It had estimated street value of $66m. At least four bulk carriers have The Marine Insurer | March 2020
been detained in Mexican ports since June 2019 and drugs were found in cargo. This has had a huge impact on the crew of these implicated vessels. Upon finding concealed drugs, the Mexican authorities arrest the crew placing the responsibility squarely on them. Masters and crew have been (and some remain) held in local high security prisons for long periods of time. Secondary to the plight of these innocent seafarers, there is of course the commercial impact on the vessel. When drugs are found on board, vessels have been detained in excess of six months.
ORGANISED CRIME A $400 billion industry clearly isn’t being run by amateurs. The high
profits from source to sale attracts major international criminal organisations and terrorists. It is also safe to say that those at the top of the tree are not the ones transporting the illicit goods. So, who is? If a vessel is being used to smuggle drugs, it is very plausible that the crew have no idea whatsoever that drugs are on board. In such cases, it is possible that port staff may be involved, such as a stevedore who has access to parts of the vessel and can move around without raising suspicion. Or smugglers can board the vessel (or attach drugs to the hull) from the seaside or at anchorage. There are numerous opportunities. Crew are, however, vulnerable. Professional traffickers have been known to target crew, either by befriending them during shore leave or taking advantage of any money worries they might have or indeed a