As the maritime industry evolves and enhances anti-narcotics operations, drug traffickers are continually devising more ingenious methods to move their products. One particularly concerning tactic is the concealment of narcotics in a vessel's sea chest, a hidden compartment in the ship's hull below the waterline. This method poses significant challenges for commercial ship owners, impacting their operations and necessitat ing vigilant underwater vessel inspections. Understanding these challenges and implementing effective mitigation strategies is essential for safeguarding against these covert smuggling operations.
THE SEA CHEST: A HIDDEN HAVEN FOR NARCOTICS
The sea chest, an underwater shell fitted with a strainer plate, serves as a reservoir for water intake into the ship’s piping system. Increasingly, this area has been exploited by traffickers to conceal their narcotics for onwards shipment due to the difficulty attributed to the inspection of submerged compartments compared to containers which pass through scanners upon arrival at the terminals. Traffickers often operate without the crew’s knowledge, making conventional search techniques ineffective.
Typically, the narcotics are packaged in watertight bags, often with ballast to prevent them from floating. These bags are tied together with ropes or straps to facilitate easier handling and securing underwater. They vary in size, weight, and shape and sometimes contain a tracking device for retrieval. Between January 2020 - December 2022, nearly seven tonnes of cocaine were intercepted worldwide in the sea chests of about fifty cargo ships of varied types, sizes, and flags. During 2020, eight out of nine vessels with contaminated sea chests were containerships. In 2021, five out of thirteen reported incidents involved fruit juice carriers. In 2022, 20 of the 26 vessels with drugs in the sea chest were bulk carriers. Until April 2023, no fewer than seventeen of the vessels contaminated were bulkers.
CHALLENGES FACED BY SHIP OWNERS
The discovery of narcotics on a vessel can lead to severe consequences for ship owners, including:
Detention and Delays: When drugs are discovered on board, the vessel is often detained for extensive forensic investigations. This can lead to significant delays, disruptions to schedules, and financial losses. These delays can also result in loss of hire periods and missed fixtures, which is particularly detrimental when carrying perishable cargo. Moreover, regional Port State Control regimes, such as the Paris MoU and Tokyo MoU, have protocols that allow for the detention and banning of ships with repeated non-compliance. For instance, the Paris MoU annual report highlighted that vessels with serious offenses, including narcotics smuggling, faced increased detention and entry denial. The 2022 report showed that the detention percentage in 2022 rose to 4.18%, the highest in ten years, up from 3.49% in 2021.
Legal and Financial Liabilities: Ship owners can face hefty fines when narcotics are discovered onboard, and if the crew is implicated, criminal charges and sanctions may follow. Determining liability between owners and charterers can be contentious, especially when charterparty clauses do not account for modern smuggling methods. A notable example is the case of the MV MSC GAYANE, where 19.76 tonnes of cocaine were discovered hidden in shipping containers in the port of Philadelphia on 17 June 2019. The ship was detained for nearly a month and MSC had to pay $50 million to US authorities as part of a settlement to secure the release of the vessel, including $10 million in cash and a $40 million surety bond. Eight out of twenty-two crew members were charged and convicted for their roles in the operation. Moreover, this led to the temporary suspension of MSC’s certificate under the voluntary Customs-Trade Partnership Against Terrorism program, which provides participants with quicker border clearances.
Reputational Damage: The association with drug trafficking can severely damage a ship owner's reputation, affecting future business prospects and stakeholder trust. For example, MSC - the world’s largest ocean carrier - has faced fallout from multiple narcotics smuggling cases in recent years. In addition to the incident involving MSC GAYANE, there have been numerous other prominent incidents involving the company, most recent in October 2023 when 55kg was found onboard the MSC MAXINE. Previous impact statements made by the company have stated that they “suffered significant financial and reputational damage”, and that incidents are “an unwanted and undeserved stain on record”.
Increased Insurance Costs: Vessels involved in drug smuggling incidents often face higher insurance premiums due to the increased risk. Insurers may also impose additional requirements, such as mandatory underwater inspections and enhanced security measures, further adding to the operational costs. High-risk ports, particularly in regions like Central and South America, exacerbate these risks.
Operational Disruptions: The need for extensive forensic investigations can disrupt the vessel's operations, requiring the diversion of resources and personnel. In some cases, ports may deny entry to vessels with a history of drug smuggling incidents, further complicating logistics and operational planning. In April 2024, the bulk carrier TRANSMERIDIAN faced a three-day delay at the port of Santos due to seizure of narcotics from the sea chest of the vessel. The ship got port clearance only after the authorities and customs made a second inspection of the vessel.
MITIGATION STRATEGIES
To combat these challenges, ship owners must adopt proactive measures. These can include:
Regular Underwater Inspections: Implementing routine underwater inspections, including video documentation, can help detect tampering with the sea chest or other parts of the hull. These inspections should be conducted at both departure and arrival ports. Ports like Port Botany in New South Wales have adopted these methods, leading to successful interceptions.
Advanced Security Measures: Utilising technologies such as underwater drones and robotic vessels can enhance the detection of concealed narcotics. For example, in October 2023 the Australian authorities used an underwater Remotely Operated Vehicle (ROV) which led to seizure of 154kg of cocaine concealed inside the hull of a cargo ship that had arrived from South America to the Port of Melbourne.
Collaborative Intelligence Sharing: Working with international and local authorities to share intelligence on smuggling methods and trends can enhance the identification of high-risk vessels and ports. For instance, in October 2023 137kg cocaine worth £10 million was found hidden in the sea chest of the Panama-flagged cargo ship COOL EXPRESS at Sheerness, Kent. The operation was a result of effective intelligence sharing between the National Crime Agency (NCA), the Metropolitan Police, and Border Force Maritime Command.
CASE STUDY: BRAZIL
Brazil has seen a significant rise in maritime narcotics trafficking. Between 2017 and 2022, it was the second-largest origin for cocaine intercepted by law enforcement worldwide, trailing only Colombia. While Brazil is not a producer, its ports - especially in the south - have become critical points for drug shipments to Europe, Africa, and Asia. The most recent incident took place on 2 April 2024, when divers from the Brazilian Navy seized 211kg of cocaine from the sea chest of the Liberian-flagged bulk carrier TRANSMERIDIAN that was docked in the port of Santos. AIS data showed the vessel was en-route to the port of Rotterdam in Netherlands and ultimately destined for Germany. The vessel had been selected for inspection after being deemed as a high-risk target for narcotics traffickers. Port clearance was granted only after a second inspection by authorities and customs, resulting in a three-day delay for the vessel.
Underwater inspection services in Brazilian ports are permitted if performed by accredited professional divers and compliant with the Brazilian Navy's standards (NORMAM 15/DPC). In some ports, such as Santos, diving companies are licensed and supervised by the port authority. Due to limited visibility and under keel clearance, the best time for dive inspections is during daylight at the anchorage. Arranging these inspections can be time-consuming, so anti-drug services should be planned well in advance to avoid delays in obtaining permits from local authorities.
CONCLUSION
In the face of evolving narcotics smuggling tactics, underwater vessel inspections have become a critical line of defence for commercial ship owners. The presence of narcotics in the sea chest poses significant operational, legal, and reputational risks. By adopting comprehensive inspection protocols, leveraging advanced technologies, and reinforcing contractual safeguards, ship owners can mitigate these risks effectively.
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