Paraguay redirects cargo to Buenos Aires due to problems in Montevideo

Raúl Valdez, president of the Center for River and Maritime Shipowners (Cafym), informed that excessive delays at the Port of Montevideo have led to cargo from Paraguay being redirected to Buenos Aires.

According to information obtained by news agency Argenports, Valdez noted that while Buenos Aires is more competitive in terms of costs, shipping companies typically transship cargo in Montevideo due to its predictability and operational safety.

“For some years now, this advantage of the Port of Montevideo has been rapidly deteriorating due to the lack of investment and necessary improvements, in addition to the expansion of the Cuenca del Plata Terminal,” Valdez added.

In recent years, Paraguayan foreign trade has favored Uruguay as its outlet to the sea, but shipping companies claim that Montevideo has lost competitiveness due to delays.

Uruguayan port authorities are concerned about the potential migration of cargo to Buenos Aires. They explained that several issues, such as the strike in December 2023 following a failed agreement between companies and the workers’ union, have put Uruguay’s competitiveness at risk.

“Cargo from Paraguay is a clear example over the years. There has been some improvement under this administration. However, we already have indications that some of the cargo is migrating to Buenos Aires,” said Alejandra Koch, director of the National Port Administration of Uruguay.

Source: Portal Portuario

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