Hundreds of ships line up to export soybeans

On March 11, a line of 277 ships waited to dock at Brazilian ports, one of the largest in history, caused by a combination of problems. The wait is ten days on average.

According to Larry Carvalho, a lawyer at Rabb Carvalho, an expert in foreign-trade conflicts, one of the main causes for this bottleneck is the delay in harvesting soybeans and the low availability of bulk carriers. The executive explains that the intense cold in the United States made the country increase its imports of coal, which increased the concentration of bulk carriers in the region in January and February. The delayed soybean harvest in Brazil also accentuated the need for more vessels in March.

“Covid-19 has also caused delays in international operations because of docking restrictions in some places and delays in crew repatriations. We also must not forget that China has prevented Australia’s iron ore from entering the country amid political disputes. All of this removed tonnage from the market,” he says.

Rains in Arco Norte, where the Rabb Carvalho office concentrates its activity, also prevented any movement in the ports. On the access roads to Miritituba (PA) between the BR-163 and BR-230 highways, there were more than 3,000 trucks lined up last month.

In this context, the cost of shipping for soybeans has risen. In December, freight from Santos to China, for example, cost US$ 32 a ton. In February, it rose 43.7% to US$ 46 a ton.

“We are predicting disputes over demurrage and soy quality,” says Carvalho. In general, he says, when the shipment arrives in China after days in the rain, there are losses in the quality of the grain. Even with the trading companies giving a discount, the Chinese recipients file complaints”, says the lawyer, who represents several ​logistics, transport, and agribusiness companies.

Source: Valor Econômico

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