25 January 2021

Even as Covid-19 caused major disruptions to industries, supply-chains, and consumer behaviour, few lines of business have managed the challenges better than the global cocaine industry, with traffickers proving to be very flexible. With shipments increasing in size, the threat to trans-Atlantic shipping operations of cocaine smuggling persists.

By Kristian Bischoff, Analyst

Europe is one of the main markets for cocaine in the world, with an estimated import of more than 100 tonnes of product entering major European ports annually, with a market value of +10 billion EUR. Most of the bulk traffic is facilitated by large and powerful criminal organisations, with local criminal groups taking over at distribution levels.

As Covid-19 spread to every continent, producers in South America managed to keep production lines open despite local lockdowns and continued to ship their cocaine in bulk quantities to Europe almost unabated. This went on even as borders closed, social restrictions were implemented and night clubs across the continent were closed, first in March 2020 and then again during the autumn. The main changes to operations for the trafficking networks have been to refocus efforts on large shipments, often in the +100 kg and even multi-tonnes ranges, as seen in customs seizures.

From arriving in ports and hubs, the transport of the cocaine as part of legal logistics operations continues, with very few seizures of the drugs in transit across Europe – even when borders were tightly controlled to limit normal traffic. Upon delivery to high-level traffickers, the drugs are stockpiled and sent to local dealers for distribution.

It is here the main impact on the cocaine trade has been seen. Local dealers have had to be flexible and rethink how to reach their customers, with many now resorting to dark-web marketplaces and home deliveries instead of their usual nightlife outlets. With curfews or lockdowns limiting free movement in many countries, some dealers have even started disguising themselves as food-delivery workers to access their end customers. Covid-19 challenges to distribution have prompted a price increase, too, keeping local markets profitable.

For commercial maritime trade, the buoyancy of the cocaine industry means that there is an enduring threat of smuggling from South America - with Santos in Brazil being a central hub - to major European ports in Spain, the Netherlands, and Belgium. While the shipments are somewhat larger than before the pandemic, smugglers continue to hide the product in containers with perishable fruit or foodstuffs – even during pandemics, people must eat, and food goes quickly through customs. Law enforcement operations against smuggling may delay ships from continuing their routes, or crew may be implicated in the illicit activities.

For land-based hauliers, the situation can result in a danger to drivers. If the trafficking networks fail to obtain the cargo inside the ports of arrival, there is a risk for lorry drivers to pick up containers containing cocaine shipments at major European ports. With bulk quantities of drugs and large sums at stake, traffickers will in most instances try to get their cargo back, meaning that lorries risk being attacked and robbed.

Even as the second wave of Covid-19 has stunned most of Europe, smuggling of illegal drugs will continue in 2021 and remains a threat to shipping operations, and in turn to land-based hauliers.

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