Most of Columbian Cocaine not destined for USA

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Most of Columbian Cocaine not destined for USA

YogiBear
https://www.maritime-executive.com/editorials/op-ed-most-of-colombia-s-northbound-cocaine-isn-t-headed-for-america


Most of Colombia's Northbound Cocaine Isn't Headed for America
The U.S. is no longer cocaine’s true north.
altNorthbound cocaine by destination, 2012-2016 (SankeyMATIC / Kendra McSweeney, CC BY-ND)
BY THE CONVERSATION 07-12-2020 08:12:39
[By Kendra McSweeney]

The Amazon Prime Video series “ZeroZeroZero” shows U.S. viewers an accurate picture of the modern cocaine trade that’s rarely seen on screen. I study cocaine trafficking and U.S. drug policy, and the show reveals three truths that challenge the U.S. government’s justification for its war against cocaine trafficking in Central America and Mexico.

1. Most cocaine isn’t destined for US markets

A fundamental government assumption is that any cocaine smuggled north out of South America, where it is produced, is inevitably bound for American streets.

That is why the U.S. spends billions of dollars every year attempting to intercept the boats and planes that shuttle cocaine from South America to Central America, Mexico and the Caribbean – an area known to anti-drug forces as the “transit zone.”

In 2018, for instance, the U.S. military trumpeted its role in drug seizures in the region by claiming that American forces had “helped keep the equivalent of 600 minivans full of cocaine off U.S. streets.” By the same logic, the federal government considers anyone caught moving cocaine anywhere in the transit zone to be threatening the U.S.

That assumption is behind the March 2020 federal indictment of Venezuelan President Nicolás Maduro for, among other things, exporting cocaine to Honduras – which prosecutors claimed was “expressly intended to flood the United States with cocaine.”

And it’s behind the recent federal complaint against Honduras’ former chief of police, who had allegedly conspired to “transport the drugs westward in Honduras towards the border with Guatemala and eventually the United States.”

Neither case offers proof that the cocaine involved actually entered U.S. territory. U.S. law requires only that the intent be there, and it is assumed that traffickers must intend for the cocaine to reach the U.S. After all, where else would it go?

“ZeroZeroZero” offers the inconvenient answer. Episode 1 takes viewers to northern Mexico as 5.5 tons (5,000 kilograms) of cocaine in sealed pucks are being hidden in the bottom of cans of chilis. Even though the cocaine has made it as far north as Monterrey – less than three hours’ drive from Laredo, Texas – viewers learn by Episode 2 that the drugs are not going to the Mexico-U.S. border. Instead, they take a sharp turn southeast and are loaded onto a container ship at the port of Tampico, headed for Italy.

This is why the show shines. It depicts a little-known reality: Far more cocaine is transshipped through Central America and Mexico to markets worldwide than finds its way up American nostrils.

How do I know? Illicit commodities are notoriously hard to track. But as I explain in a recent article, an obscure U.S. government data set has for years been compiling reliable intelligence on cocaine traffic through the transit zone. When compared alongside analysts’ best estimates of cocaine consumption in the U.S., the data tell an intriguing story.

Between 2012 and 2016 – years for which there are comparable data – an average of at least 1,400 tons of high-purity cocaine was annually exported north out of South America and into the transit zone. Of that, law enforcement removed about 335 tons yearly, whether in the transit zone, at the border or within the the U.S. In the same period, U.S. cocaine users consumed on average barely 200 tons per year. That means they used less than one-fifth of the available cocaine flow.

So where did the majority of the remaining cocaine go – almost 900 tons a year? There are no comparable sources for the amount consumed in transit zone countries or in Canada. There is, however, strong evidence to suggest that hundreds of tons annually are being trafficked through Mexico and Central America and out to Europe, and across the Pacific to Asia and Australia. Traffickers target those overseas markets for good reason: That’s where the money is, and they have a cheap way to get cocaine there.

2. The big money is in growing overseas markets

The U.S. government’s assumption wasn’t always wrong. A generation ago, the Western Hemisphere cocaine trade did function like a pipeline that started in South America, wound through Central America, Mexico and the Caribbean, and discharged cocaine almost exclusively into American neighborhoods.

In 1990, the U.S. had an estimated 4.3 million cocaine users. Meanwhile, Western Europe’s cocaine markets were still in what a United Nations report called “a developmental stage.”

Now, the picture is dramatically different. U.S. cocaine consumption has been in a prolonged “nosedive,” according to a report from the London School of Economics. In 2018, there were fewer than 2.5 million users, with lower rates of adult use than in many European countries. Experts continue to debate why U.S. demand has plummeted. Even the recent and unprecedented surge in cocaine production in Colombia, which has increased purity and dropped prices in the U.S., has only just curtailed that long slide.

Meanwhile, cocaine consumption in cities across 20 European countries rose 70% from 2015 to 2019. Demand in Australia is high and growing, as it is in Eastern Europe and Russia.

Overseas cocaine markets aren’t just expanding. They’re also potentially far more lucrative than North American ones. In 2017, a kilo of cocaine that sold wholesale for US$28,000 in the U.S. went for twice that in Northern Europe. Traffickers stand to make immense profits if they can move large volumes cheaply over long distances.

This is where the containers come in.

3. Bulk cocaine is exported from Mexico and Central America in shipping containers

Mexico and Central America boast three of Latin America’s five busiest maritime ports. The busiest of all is Colón, the Caribbean terminus of the Panama Canal, which after the canal’s recent expansion can handle 4.3 million shipping containers per year. In fact, maritime port facilities across the region have been upgraded in recent years, with new capacities and efficiencies that have lowered costs and enhanced the region’s competitiveness as a transoceanic trade hub.

Cocaine traffickers are taking full advantage. The port of Colón has become a major hub for Europe-bound cocaine. Similarly, Costa Rica’s recently enhanced Limón-Moín port facilities have been a boon for trans-Atlantic cocaine shipping. In February 2020, inspectors there found 5 tons of cocaine in a shipment of ornamental plants destined for the Netherlands.

The same month, a container of mashed bananas out of Limón was stopped in Italy with 3.3 tons of cocaine inside. In May 2020, a container full of coffee left Honduras’ newly expanded port of Cortés. Upon arrival at Le Havre, France, 1.5 tons of cocaine were found among the coffee beans.

These are just some of the cocaine seizures that made headlines in the last several months. At best, 1 in 10 containers circumnavigating the globe is searched by authorities; the rate is even lower for containers holding perishable commodities like plants and fruit. So these seizures, while large, likely represent just a fraction of the cocaine transshipped via container out of Central America and Mexico.

As “ZeroZeroZero” shows, cocaine traffickers operating in Mexico and Central America may be working in the United States’ proverbial back yard, but their distribution networks reach much more widely than they used to. The U.S. is no longer cocaine’s true north.

Kendra McSweeney is a Professor of Geography at Ohio State University. This article appears courtesy of The Conversation and may be found in its original form here.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

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Re: Most of Columbian Cocaine not destined for USA

canadiana
Administrator
Interesting article!Didn’t Mencho’s CJNG Cartel grow in leaps quite rapidly that way shipping ‘offshore’ to faraway lands?Remember even Brazil and Mexico have drug problems now that didn’t before and have fairly large populations so there’s volume to sell there.
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Re: Most of Columbian Cocaine not destined for USA

Anon
Zero, Zero, Zero also showed the involvement of an American shopping firm. Makes you wonder how many “legal” entities are involved. The typical cartels may actually be the small fish in the international cocaine trade.
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Re: Most of Columbian Cocaine not destined for USA

ElGrandeRojo
But of course they're the small fish. In order to consistently supply the vast amounts of drugs they do, they must have contacts in all levels of government of all countries involved, whether it be production, transport, sales, and or  money laundering. Aside from gov cooperation they need legit companies to support them as well. The Narcos are just the poster boys. Much easier to blame "savages", and bad hombres for all the bad stuff.
ElGrandeRojo
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Re: Most of Columbian Cocaine not destined for USA

Anon
True, the money goes around to the bankers, politicians and business partners, but these days the cartels are so factionalized. How many can coordinate these intercontinental operations? CJNG and CDS? What exactly is the role of the cartels, just to warehouse the product in their territory and wholesale? Do the shipping business get a fee or are they partners?
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Re: Most of Columbian Cocaine not destined for USA

El_Bujo
In reply to this post by YogiBear
According to Mickey Munday, the infamous American trafficker, the cartel bosses (in both MX & Colombia) would keep the "good stuff" for themselves, while sending the "other stuff" up north and beyond.

The "good stuff" was high grade (up to 99% purity) coke made with Acetone/Ether, as opposed to the "other stuff" which was quickly made (70-80%) with diesel and gasoline. Lord knows what other shortcuts as well were made during production. If you know anyone that has done coke in the past couple decade, they will tell you that most of it has a gasoline smell to it.

Hell, they are saying that more than half of the stuff coming to the US is actually mixed with "synthetic coke" and even now fentanyl.

Source: https://khn.org/news/not-yesterdays-cocaine-death-toll-rising-from-tainted-drug/

My guess as to why the European guys get the better stuff is because they..

1) Pay more

2) Are long time established DTO's (Italians/Albanians/Dutch)

3) Always end up cutting their product majorly (up to 16x)
It matters not how a man dies, but how he lives.
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Re: Most of Columbian Cocaine not destined for USA

redlogarythm
Great points @ElBujo. Don´t forget how the European Union border system facilitates things. The most difficult thing is to receive cocaine and meth in the ports. But the size and authorities at ports such as Antwerp, Gioia Tauro, Valencia or Barcelona and the existance of very old smuggling organizations (in southern and western Spain mainly) facilitate things very much.

Once on land you can go wherever you want without any kind of controls. There´s no such thing as border searchs (except from very aleatory ones) If you load a truck in Spain you can go into France, Germany, Holand, Italy or Belgium without even eing scanned.
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Re: Most of Columbian Cocaine not destined for USA

El_Bujo
Absolutely, my friend and thank you.

Once you get the dope on land in the EU, there are no problems distributing it from the UK to the Balkans.

As for ports, don't forget about the port of Naples ;)

https://www.euronews.com/2020/07/01/world-s-largest-seizure-of-amphetamines-italy-finds-haul-of-isis-made-drugs-near-naples

Fourteen tonnes of an amphetamine-type drug, made by the so-called Islamic State group in Syria, was found in southern Italy. The haul is worth about €1 billion and came in the form of 84 million captagon tablets, according to a police statement released on Wednesday. The drugs were found in three containers in the port of Salerno, south of Naples, and hidden in paper cylinders. This is the largest seizure of amphetamines in the world," police said.
It matters not how a man dies, but how he lives.
J
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Re: Most of Columbian Cocaine not destined for USA

J
In reply to this post by El_Bujo
There are all sorts of arrangements, but this pre dates the Mexican organizations as the premier traffickers, who want top quality, because they are taking 15%, 20% off the top, or so.
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Re: Most of Columbian Cocaine not destined for USA

Anon
In reply to this post by redlogarythm
So how does a group, let’s say CJNG, get paid? CJNG would purchase the coke, let’s say in Central America, and bring it to their territory. Would the owner of the freighter be a partner? Do they own their own companies that own the ships? I know they control their ports. Then when they offload, is that where they pick up the money, or do they distribute to cells in those countries who traffic it? Does the money go from the cells to CJNG at the point of purchase or are they fronted the drugs? I understand how the traffic to America works (or worked) but I know less about the modern, transcontinental trade.
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Re: Most of Columbian Cocaine not destined for USA

Anon
In reply to this post by J
Right, so why are Mexicans even involved? This seems like it could go from Colombia or Venezuela to Europe without Mexican DTOs being involved at all.
J
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Re: Most of Columbian Cocaine not destined for USA

J
It does.  Colombian/SA traffickers routinely send shipments to Europe, the European traffickers can negotiate directly in SA, it just depends on contacts, and preference, and all sorts of variables. Mexican traffickers can also send from SA countries directly to Europe.

CJNG, lets just say Mencho, can buy bulk from sources of supply in Colombia, and then sell it at a price point in the United States/  CJNG can also buy bulk and sell to their own traffickers in Tijuana, who in turn, sell it to their own contacts in the US.  CJNG can sell to traffickers who send it to Europe, or they can send it on their own.

There is no one way.  
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Re: Most of Columbian Cocaine not destined for USA

Anon
So if the majority of cocaine is no longer going to the US, are the Mexican DTOs no longer the main cocaine suppliers in the world?
J
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Re: Most of Columbian Cocaine not destined for USA

J
Cocaine in the US is still good business, use is rising in the US too, it's just European markets are less saturated, and the numbers are higher, plus working in the US always has the risk of the Justice Department, indicting and finding you.

They are, they probably send more work to Europe than solely South American networks, and more work to the US than any of those groups.