Navigating Maritime Drug Enforcement: Implications for Commercial Shipping and Cargo Security

The global maritime industry is experiencing a period of heightened regulatory scrutiny as U.S. enforcement agencies intensify their response to record drug trafficking levels. As traffickers shift their strategy to target commercial vessels in the wake of increased enforcement efforts, owners, operators, charterers and insurers are faced with new compliance considerations from both a regulatory and insurance perspective. At the same time, this increase in enforcement also presents an opportunity for proactive companies to bolster their operations, strengthen their insurability and mitigate risk through robust compliance measures. Through strategic planning, comprehensive compliance programs and experienced legal guidance, current challenges can be turned into competitive advantages.

Trump Administration's Use of MDLEA

The scale of international maritime drug trafficking is immense, with global cocaine production hitting record numbers in recent years, according to the United Nations Office on Drugs and Crime. The U.S. government's response has been multipronged and extends beyond U.S. territorial waters. For example, in November 2025, the U.S. Coast Guard (USCG) Cutter Stone reportedly set a service record by seizing 49,000 pounds of cocaine in a single deployment. This heightened interdiction campaign is furthered by the Trump Administration's current counterterrorism policy of authorizing direct military airstrikes on suspected narco-trafficking vessels.

The Maritime Drug Law Enforcement Act (MDLEA) is the primary federal statute prohibiting the illegal transportation of controlled substances by a vessel. Notably, the MDLEA applies beyond the territorial jurisdiction of the U.S. and prohibits any person onboard a vessel subject to the jurisdiction of the U.S. – including vessels without nationality (stateless) or if the flag state consents or waives objection to enforcement of U.S. law – to knowingly or intentionally distribute, or to possess with the intent to distribute, a controlled substance.

In tandem with USCG law enforcement efforts under the MDLEA, the recently imposed Trump Administration counter-narcoterrorism policies have resulted in a shift by traffickers from using traditional small "go-fast" drug-running vessels to a critical part of the global supply chain: commercial vessels plying their trade on the high seas. Packages of narcotics can be concealed in prepackaged containers, reefer units, within bulk cargoes or voids, or onboard the ship itself, either by shipping companies or terminal employees or on the ship's external structure. This is illustrated by the Colombian Navy's recent discovery of more than 200 kilograms of cocaine hidden in a merchant ship's sea chest at the port city of Buenaventura.

Legal Risks to Vessel Owners, Operators, Crew, Shippers and Insurers

The discovery of drugs onboard a commercial vessel introduces significant legal risk to vessel owners, operators, crew, shippers and insurers. It can trigger immediate vessel and crew detention, which can be lengthy and extremely costly for vessel owners. Additionally, under the MDLEA, any vessel operating on the high seas may become subject to U.S. jurisdiction, exposing companies to prosecution under U.S. law, including the "willful blindness" doctrine, where companies can be charged for allegedly deliberately ignoring red flags related to narcotic trafficking.

Forward-thinking maritime companies – and their insurers – are recognizing that comprehensive anti-smuggling compliance programs serve multiple valuable purposes: They protect assets, demonstrate good faith to authorities and insurers, and provide crucial documentation should any issue arise. By taking practical preventive measures, such as comprehensive crew training and anti-trafficking policies and procedures, enhanced watchkeeping and security during port calls in high-risk regions, securing access points to vulnerable spaces aboard the vessel, conducting pre-departure inspections and maintaining thorough documentation of all security protocols, companies can not only reduce the risk of exploitation by trafficking networks, but also strengthen their insurance coverage positions and provide evidence of conscious due diligence to protect against any allegations of willful blindness.

The pre-voyage planning and crew training should be bolstered in light of this last year's experiences. Acknowledging the heightened awareness and showing tangible training steps with crews and checks of known narco-trafficking routes provide a measure of protection for disputes that can arise – both from a government perspective and commercially in a maritime arbitration or court proceeding. That is, a security delay or drug interdiction can cause goods to spoil, a vessel laycan to be missed or a vessel arrest for unrelated claims.

Tacking the Problem When Issues Arise

When incidents do occur despite best efforts, immediate access to experienced counsel is paramount. Holland & Knight's multidisciplinary approach combines deep maritime industry knowledge with sophisticated white-collar defense capabilities, enabling our team to coordinate responses across multiple jurisdictions and legal domains simultaneously. Our attorneys provide crisis response services, including coordination with local counsel worldwide, representation in USCG and U.S. Customs and Border Protection proceedings, criminal defense, liaison with flag state authorities and communication with protection and indemnity (P&I) insurers.

Holland & Knight attorneys also conduct pre-incident internal evaluations that help clients assess the effectiveness of their compliance program, identify any vulnerabilities and implement remedial measures while protecting the company's interests and maintaining attorney-client privilege. This comprehensive support helps clients navigate incidents and investigations efficiently while preserving their business operations and reputation.

As enforcement activities continue to evolve, maritime companies that proactively invest in robust compliance measures and maintain relationships with experienced counsel will be best positioned to navigate challenges successfully, protect their assets and personnel, and maintain their competitive standing in the global marketplace.

If you have questions, please contact one of the authors or another member of Holland & Knight's Maritime Team.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.