Port corruption: a phenomenon likely to impact the entire supply chain spectrum

The image shows a night time view of Barcelona port, including cranes, ships and cargo containers. Source: Freepik

18 September 2023

The opacity and difficulty of understanding the shipping industry provides definite opportunities for smugglers to infiltrate, corrupt and even control the sections of the supply chain that are essential to the routing and distribution of their contraband. They seek to corrupt key individuals among the many intermediaries and port workers likely to play a role. In this context, the entire supply chain right up to the local authorities is likely to be involved.

By Louis Borer, Senior analyst

Alongside gigantism, opacity is one of the adjectives that can best describe the world of shipping industry. The major ports, which used to be in the heart of coastal cities, are now decentralised and difficult to access, and understanding how the complex maritime logistics chain that underpins globalisation is often reserved for insiders. This opacity and complexity are transformed into opportunities by smugglers to carry out their illicit operations. Identifying them is made even more complex by the fact that some gangs have been infiltrating the networks for several decades, giving them a certain degree of control over the supply chain. Service providers, handlers and brokers are among the many people likely to be targeted. Port workers are particularly vulnerable, and the arduous nature of their work, which is often poorly paid, makes them prime targets. Regularly targeted by traffickers, dockers and crane operators, essential personnel in unloading operations, are likely to receive substantial commissions (up to 10% of the value of the contraband). These workers are likely to be involved in Rip-on/Rip-off operations. On the other hand, the most reticent may be directly threatened.

The entire logistics chain is therefore liable to be exposed to cases or attempts of corruption and intimidation. Corruption can also be carried out at a higher level. There are also suspicions concerning law enforcement and customs services, where snitches are said to be informing local mafias of seizures and operations in near real time. Customs is also a critical point, particularly when it comes to scanning fake cloned containers.

To counter the growing phenomenon of corruption in ports, port and state authorities are trying to put in place mitigation measures, including attempts to limit the human factor as much as possible (also for budgetary reasons) by automating certain processes. However, without solid cybersecurity procedures or measures, the most automated ports can also be the most vulnerable, as some of the ports' digital devices have been infiltrated, providing access to the container identification system. This digital access makes it possible either to identify a container into which illegal goods have been introduced, or to "certify" the contents of the container in order to limit checks on it. Access to this digital information generally requires the corruption of technical staff. “Smart” containers, the locking of computer data and the sharing of data with local authorities are all preventive measures, recommended by Europol, to limit the impact of these threats.

Finally, in line with a favourable risk/reward ratio, Organised crime groups (OCGs) are demonstrating their capacity for adaptation, flexibility, and responsiveness. For example, the increased security of a port is likely to result in illegal cargo being transferred to a secondary port that is less well equipped in terms of security.

The work of Europol, the Maritime Anticorruption Network (MACN), and the International Chamber of Shipping drugs report are likely to shed some light on this opaque issue, whose effects on the shipping industry are, however, clearly visible.


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Discover further insights into the growing utilisation of European ports for the illicit transportation of goods via maritime routes, as well as the significant role played by human factors in addressing this pressing concern in Louis Borer's analyst briefing.

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