Oct 14, 2024
Grain Shipments Suspended on the Tapajos River in Northern Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Grain shipments on the Tapajos River in northern Brazil were suspended on October 11th due to low water levels according to the Association of Port and Cargo Terminals in the Amazon Basin (Amport). Amport indicated that barge operations are expected to resume in November if forecast rains materialize. This southern tributary of the Amazon River transports grain produced in Mato Grosso from the Port of Itaituba to ports on the Amazon River such as Santarem (PA), Barcarena (PA), and Santana (AP).
Grain shipments on the Madeia River in the western Amazon were suspended in September due to low water levels. These two southern tributaries are the main transportation routes for grain shipments heading north to the Amazon River. Grain could still be transported by truck via Highway BR-163 to the Port of Santarem on the Amazon River.
The Tapajos River transported approximately 15 million tons of grain in 2023 including 7.5 million tons of corn and 6.8 million tons of soybeans. Since early September, barge capacity on the river has been reduced by 40%. Companies such as Cargill, Louis Dreyfus, Amaggi, Hidrovias do Brazil, and Unitapajos have barging operations on the Madeira and Tapajos Rivers.
The director of the Brazilian National Association of Grain Exporters (Anec), Sergio Mendes, indicated that these disruptions had been anticipated and that grain shipments had already been redirected to ports in southern and southeastern Brazil. He feels there will not be any overall reduction in Brazil's grain exports due to problems on the northern rivers, but they might take a little longer and cost a little more.
This is the second year in a row of logistical problems along the Amazon River. The forecast is calling for increased chances of rain in northern Brazil during the second half of October and into November, but some meteorologist fear that water levels on the rivers in northern Brazil will not fully recover until 2026.