[Brazil] Battles: Armed clash

Supply-chain Risk Briefing

1) Summary On March 21, 2025, armed clashes occurred between military police and drug trafficking organizations in Santos, São Paulo state, Brazil. Santos is Brazil's largest port city, and security instability in the region could potentially impact logistics operations. Limited casualties of 1 death have been reported so far.

2) Supply-chain impact

• Santos Port operations: Security deterioration at Santos Port, Brazil's largest container port, and surrounding areas could potentially affect port worker safety and cargo transportation routes
• Coffee and sugar exports: Santos is a major export hub for Brazilian coffee and sugar, raising concerns about agricultural logistics network disruptions in case of continued security instability
• Automotive parts supply chain: The Greater São Paulo metropolitan area is Brazil's manufacturing center, with potential indirect impact on import/export cargo transportation through Santos Port
• Land transportation network: Potential increased security concerns on major road networks connecting Santos and São Paulo inland areas

3) Watch points

• Enhancement of Santos Port security measures: Track announcements and implementation of additional security measures by port authorities and local government
• Recurrence patterns of similar incidents: Monitor frequency and intensity changes of security incidents in Santos and Greater São Paulo metropolitan area over the next 1-2 weeks