Dec 04, 2024
Barging Operations Resume on Northern Rivers in Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
After being suspended for several months due to low water levels, barging operations on two major southern tributaries to the Amazon River resumed operations last week. According to the Association of Port Terminals and Cargo Stations of the Amazon Basin (Amport), barging operations resumed last week on the Tapajos River with barges loaded at 50% capacity. On the Madeira River, barging operations resumed last week with barges loaded at 100% capacity.
Barging on the Tapajos River, which links the Port of Maritituba to ports on the Amazon River, was suspended in early October. Water levels recovered significantly in the last 15 days allowing barging to resume at reduced capacity. This river transports grain produced in northern Mato Grosso to the Northern Arc of ports on the Amazon River.
Barging on the Madeira River was suspended in September, but water levels have recovered enough to allow barges to be loaded at 100% capacity. This river transports grain produced in western Mato Grosso and the state of Rondonia to Amazon ports.
According to the National Association of Grain Exporters (Anec), grain companies had anticipated problems due to the drought in the Amazon Basin and had directed more cargos to ports in southeastern Brazil although it increased costs.
The shipment of grain through the northern port had already started its seasonal decline even before low water levels halted barging operations. The ports of the Northern Arc, which include Barcarena (Para), Itaqui (Maranhao), Santarem (Para), and Itacoatiara (Amazonas), among others, accounted for 33.8% of Brazil's soybean exports in 2023 and 42.5% of Brazil's corn exports in 2023 according to data from Conab.
The ports of Santarem and Itacoatiara are usually more impacted by low water levels on the Tapajos and Madeira rivers. The Port of Itaqui, which is located on the Atlantic Coast of the state of Maranhao, does not receive grain via river transport. The grain arrives at the port via rail and truck, so it was not impacted by the drought.