Amazon Drought Disrupts River Transportation and Increases Manufacturing Costs

The Negro River in the Amazon rainforest has reached its lowest level in over a century, measuring just 12.1 meters after a drought year. Tributaries that once served as vital waterways have transformed into fields of wild rice and mud, highlighting the severity of the ongoing drought. A local saying captures the grim reality: “During floods, you lose everything, but the drought kills you.” For the second consecutive year, the state of Amazonas is facing an intense dry season.

In 2023, the Negro River in Manaus recorded a depth of 12.7 meters, the lowest since records began in 1902. This year, however, it has dropped even further, more than half a meter lower than the previous record low in 2010, when the river measured 13.63 meters.

The Amazon drought has significantly disrupted daily life and economic activity in the region. Rivers, essential for transportation within the state and beyond, are now impassable in many areas. This has led to isolation, supply shortages, and difficulties in accessing social programs. The impacts are felt acutely in the Manaus Industrial Hub (PIM), where businesses face mounting costs. The Amazonas State Industry Center (CIEAM) estimates that the drought has added over R$1.3 billion in expenses for companies in the Manaus Free Trade Zone. Though slightly lower than in 2023, these costs include increased freight charges, storage fees for products in third-party warehouses, and surcharges from container transport ships. A survey conducted by researchers at the Federal University of Amazonas (UFAM) found that 87% of companies have been affected by these additional expenses, while 78% have faced navigation restrictions. Most businesses have absorbed the costs, but some have partially or fully passed them on to consumers through higher product prices.

The social consequences of the drought are equally severe. Communities that depend on rivers for transportation and sustenance are facing isolation and food shortages. Raimundo Kambeba, a teacher and lodge owner in the Três Unidos community along the Cuieiras River, described the dire situation. During floods, rivers destroy crops and invade homes, but droughts dry streams and lakes, making fishing and agriculture impossible. Two years ago, boats could reach Três Unidos directly.

Due to the receding waters, travelers must disembark over a kilometer away. The drought has profoundly affected the community’s physical, mental, and spiritual well-being, halting education, communication, and social activities.

Floods and droughts are part of the Amazon’s natural cycle, but the current conditions have been unusually extreme. By early December, when rivers typically begin to rise, Brazil’s Geological Service (SGB) reported that the Amazon River basin was still experiencing extreme drought. Virgílio Viana, the Sustainable Amazon Foundation (FAS) superintendent, warned that this marks a “new normal” for the region. The drought is not just an environmental issue; it has far-reaching economic, social, and public health implications. Viana emphasized the need for broader investment in climate adaptation and structural projects, such as completing the BR-319 highway to connect Manaus to Porto Velho and expanding the state’s waterways.

The following chart shows the container throughput recorded at the Port of Manaus between January 2021 and October 2024. The data comes from DataLiner.

Container Throughput at the Port of Manaus | Jan 2021 – Oct 2024 | TEUs

Source: DataLiner (click here to request a demo)

According to Viana, current efforts to address the drought fall far short of what is needed. He called for comprehensive climate adaptation plans with proper budgets and timelines, warning that these plans risk becoming mere aspirations without concrete actions. Public spending in the Amazon region is often inefficient, compounding the challenges posed by tighter budgets and inadequate social infrastructure. Viana stressed that addressing the drought’s impacts requires financial resources and a focus on effective and efficient implementation.

The ongoing drought underscores the urgency of investment and action in the Amazon. Without meaningful intervention, the region faces an increasingly uncertain future, with escalating economic, social, and environmental challenges.

Source: Valor International 

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