Members and Assureds will be aware, from the Club's Circular in May 2020, of a case where illegal narcotics were found on board a vessel in Mexico and the vessel and crew were detained (click
here to access the Circular). However, the number of incidents of drug smuggling by ships have increased in recent years and is not limited to Mexico. Countries where drugs are loaded include Colombia, Ecuador, Panama, Brazil, Peru, Mexico, Venezuela, North America, and China.
When there is a drug smuggling incident, the vessel and its crew will very likely be detained by the authorities for long periods of time for forensic investigations or criminal proceedings to take place. Ship owners may be exposed to significant loss of hire, cargo claims especially where cargo is perishable, high fines and even forfeiture and sale of the vessel in certain jurisdictions.
Some recent information from the Club's correspondents includes:
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A Circular on Drug Smuggling on Bulk Carriers out of Brazil on the rise by Representascoes Proinde Ltda, Brazil. This includes detailed background information on the problem, examples of where drugs are hidden inside containers and brought on-board vessels, or attached to the hull of the ship, and suggested preventative and responsive measures. The Circular is available
here;
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Globalpandi, SA, Venezuela, reminds us that drugs concealed on a ship's hull is always a potential risk, and they recommend Owners carry out independent precautionary underwater inspections in certain circumstances before official/mandatory inspections.
All Members and Assureds should be aware of the risks of drug smuggling and take reasonable measures to prevent it. This may include:
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