MSC Suspends Multiple Intermodal Services in Brazil Indefinitely

Mediterranean Shipping Lines (MSC), the world's largest container shipping company, has suspended some overland operations in Brazil over fears of drug cartels sending cargo to North America and Europe.

Last week, Geneva-based shipping company MSC said in a notice to Brazilian customers that criminals were intercepting containers in an attempt to ship drugs overseas. As a result, MSC has decided to indefinitely suspend the packing and pre-stacking operations of road, rail and barge boxes exported across Brazil.

"This only involves some intermodal operations, including container loading in Brazil," an MSC spokesman said.

The news comes as MSC prepares to expand its presence in Brazil, Latin America's largest country, with the pending acquisition of Brazilian regional container shipping operator Log-In Logistica.

Drug operations on the MSC ship have made many headlines in recent years, and even after a record $1.1 billion worth of cocaine was found on board the MSC Gayane in 2019, U.S. authorities have temporarily suspended the ship's customs trade partnership (C-TPAT) certification.

According to the International Chamber of Shipping, between January 2017 and April 2020, nearly 90 percent of cocaine, 45 percent of cannabis and 30 percent of amphetamine-type stimulants seized globally were trafficked by sea.

Brazil's largest port, Santos, was described as "the world trade center for cocaine" in a report released earlier this month by InSight Crime, a platform for reporting on organized crime in Latin America.

The report said the port had become a "key of the crux" for the global cocaine trade, with much of the growth coming from the rise of the capital's First Command (Primeiro Comando da Capital - PCC), a powerhouse that dominates São Paulo Drug gangs.

“The gang has effectively extended its drug-trafficking tentacles across the region, particularly in Paraguay and Bolivia. In doing so, the PCC has taken control of several major cocaine trafficking routes, where the drug is produced in Bolivia and shipped to Santos via Paraguay and Brazil.” InSight Crime pointed out.