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Brazil grain barge shipping returns as Amazonian drought subsides
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Brazil grain barge shipping returns as Amazonian drought subsides
Nov 27, 2024 9:47 AM

SAO PAULO, Nov 27 (Reuters) - Transportation of soybeans

and corn on barges along the Brazilian Amazon's Tapajos River,

which had been suspended in early October due to dry weather,

resumed at 50% capacity this week, operators said on Wednesday.

Shipping began again on that waterway, which receives grain

cargos from Brazil's biggest farm state Mato Grosso and nearby

areas, as rain raised river levels, said Amport, an association

representing port terminals and cargo transshipment operators of

the Amazon basin.

Barge shipping on the Madeira River, another Amazon

waterway, returned to normal this week, Amport said. Grain

transportation on the Madeira had been halted in September, even

earlier than on the Tapajos River, amid a severe drought in the

world's largest rainforest.

"The Madeira River has seen a significant recovery in water

levels over the last 15 days, which has allowed navigation to

resume at full capacity," said Amport, whose members include

Cargill, Hidrovias do Brasil, Louis Dreyfus

and Unitapajos, a joint venture between Amaggi and

Bunge.

Cargill, Amaggi, Hidrovias do Brasil and Bunge declined to

comment. Louis Dreyfus did not have an immediate comment.

Northern ports including Barcarena, Itaqui, Santarem and

Itacoatiara accounted for nearly 34% of Brazil's soybean exports

in 2023 and 42.5% of total Brazilian corn shipments last year,

according to data compiled by Brazilian crop agency Conab.

When the drought hit, Brazil had shipped most of its

soybeans for the 2024 season. A smaller corn crop meant less

logistics pressure for the Amazonian barge system, Amport said.

Preemptively, traders had directed more cargo to ports to

Brazil's south and southeast ports, grain exporters association

Anec said, adding that this diversion increased costs.

Itaqui access does not depend on rivers that were affected

by the drought while Santarem and Itacoatiara tended to be more

affected, Amport said.

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