[Brazil] Strategic developments: Looting/property destruction

Supply-chain Risk Briefing

1) Summary On March 20, 2025, a truck carrying 2.18 tons of marijuana was seized when it attempted to pass through a police checkpoint on the MS-295 highway in the Paranhos region of Mato Grosso do Sul, Brazil. The driver fled after a chase, abandoning the vehicle, and illegal logistics activities in the area were confirmed. While direct supply-chain risk is low, this indicates regional logistics security issues.

2) Supply-chain impact

• MS-295 highway is a major logistics route near the Paraguay border, with potential for increased inspections of legitimate freight transport if illegal transport activities increase
• Mato Grosso do Sul is a major Brazilian agricultural region, raising concerns about indirect impacts on agricultural export logistics for soybeans, corn, beef, and other products
• Risk of customs delays and increased transport costs due to enhanced logistics security in the Paraguay-Brazil border region
• Potential reputational risks and introduction of additional regulations due to the coexistence of illegal transport networks and legitimate logistics networks in the region

3) Watch points

• Whether checkpoint operations are strengthened on MS-295 highway and in the Paraguay border region, and the status of freight transport delays
• Normalization status of agricultural export logistics operations within Mato Grosso do Sul and trends in the introduction of additional security measures