Mar 30, 2010
Port Strike Widens In Argentina To Include Eight Terminals
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Striking dockworkers in Argentina have expanded their work stoppage to eight different grain terminals in the Rosario area as they continue to push their demands for increased salaries. The work stoppage started a week ago against three terminals in the San Martin area owned by Cargill, Bunge, and La Plata Cereal and it has now spread to five additional terminals owned by Toepfer, Nidera, Dreyfuss, Minera La Alumbrera, and Noble.
Some 5,000 trucks are still lined up in the San Martin area waiting to unload their grain and it is expected that the number of trucks waiting to unload will swell quickly. Various unions have joined together to support the dockworkers demands. The Crushing Plant Union, the Truckers Union, and the Labor Confederation have all vowed to stop work if needed to support of the dockworkers demands. Force majeure has already been declared by some exporters in order to get out of their contracts and more declarations are expected.
The unions have already demonstrated more unity than what was expected when the work stoppage started. Reports differ if further meetings are scheduled between the unions, the terminal owners and the government.
The work stoppage is coming just as new crop corn and soybeans start to make their way to crushers and exporters. The corn harvest in Argentina is approximately 35% complete and the soybean harvest in the country is approximately 10% complete. Argentina is expected to harvest and export a record soybean crop and a large corn crop as well.
Combining logistical bottlenecks in Brazil, large crops in both countries, and now a strike in Argentina, I think it is safe to say that some business will be kicked back to the U.S. in the near term and that the export season in South America will be extended longer than normal in the fall. In the long term, exports from South America may compete with our new crop exports in the fall.