ABPA: Without containers, 40% of Brazilian pork and chicken exports are stuck in ports

The global logistical crisis caused by the disruption in the flow of international trade during the Covid-19 pandemic, causing a change in the route of ships and a reduction in the availability of containers, is leaving 40% of Brazilian pork and chicken cargoes stuck in the export ports.  The information was released on September 29th by José Perboyre, the coordinator of the logistics group of ABPA (the Brazilian association of animal protein), during a press conference held by the entity that represents the sector.

“To be very conservative, 40% of our meat is stopped today in our ports. There are shipments to Asia that take eighty days to get there and sometimes a container can remain idle for 25 days”, reported Perboyre.

According to the president of ABPA, Ricardo Santin, the association delivered a letter signed with other representative entities requesting emergency measures from the federal government. According to him, the objective is to create logistic centers in ports with greater dredging and draft capacity in the country.

“They have few short-term solutions, one of them is BR do Mar. It helps when there is cabotage,” said Santin, mentioning the bill 4199 sent by the Executive to the legislature last year and approved by the Chamber in December. If approved, the law will allow the progressive release of foreign companies in navigation operations off the coast of Brazil – an activity that is currently restricted to national companies.

See below a comparison of Brazilian exports of chicken and pork in the last three years. Data are from DataLiner:

Brazilian Exports of Chicken and Pork Meat (HS 0207 and 0203) per year | Jan to Aug 2019-2021 | WTMT

Source: DataLiner (click here to request a demo)

The change, explains Perboyre, will allow the relocation of cargo from smaller ports to more modern ones that have the capacity to receive larger vessels. “Over time, there has been an increase in ship capacity; today they can transport up to 15 thousand containers. But we don’t have ports with a draft deep enough to receive them. It is one or the other that can receive and one of the requests that we are making to the government is that the legislation allows taking the cargo from a port that does not have this capacity and take it to a larger port”, explains Perboyre. He estimates that the measure would increase the country’s export capacity by 35% to 40%.

Source: Valor Econômico

To read the full original article, visit the link:

https://revistagloborural.globo.com/Colunas/caminhos-da-safra/noticia/2021/09/sem-conteineres-40-das-cargas-brasileiras-de-carnes-suina-e-frango-estao-paradas- states-abpa.html

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