Amazon River shipping halt may last until January

For about a week, larger vessels have been unable to pass due to the river’s low water levels, although companies had already been implementing contingency plans for the drought since mid-September.

Two floating terminals have been set up in the most critical section to allow cargo transfer to barges, which can operate even in shallower waters.

Another alternative route being utilized involves transferring cargo at the port of Vila do Conde in Pará, which adds approximately 10 days to the journey, said Luís Resano, executive director of the Brazilian Association of Cabotage Shipowners (ABAC). He expects the situation to persist at least until December.

Augusto Rocha, director of the Amazonas State Industry Center (CIEAM), anticipates the disruption could extend into January, similar to last year.

In 2023, the Amazon River hit a historic low, but this year’s conditions are even more severe. Recent reports from the Brazilian Geological Service indicate that the Negro River, where the Manaus port station is located, reached the lowest levels since records began in 1902.

In the Amazon River, depths at Itacoatiara, a critical segment where floating terminals have been installed, have also fallen below last year’s historic drought levels.

Despite the more severe drought, the outlook for rainfall is more promising than last year, according to Mr. Rocha. “Rain started earlier. This year, we already have rain in October. In 2023, rain didn’t begin until November,” he said. The past 30 days of rain in northern Amazonas have exceeded volumes seen in the last decade, signaling a change, he added.

Another anticipated solution for companies is dredging the Amazon River. The National Department of Transport Infrastructure (DNIT) contracted DTA for the task in September, and the dredger is already in Manaus. However, Mr. Rocha is not optimistic that the operation will commence in time to address this year’s issues, as environmental and operational studies are needed to assess the dredging’s ecological impact.

When asked, DNIT stated that “currently, teams are in the mobilization phase to begin dredging, scheduled for the second half of October,” in the section between Manaus and Itacoatiara. “The contract will last five years, ensuring continuous, essential service to maintain navigability,” the agency said.

The chart below uses DataLiner-derived data to compare each month’s export volume in the period comprising the first eight months of the year between 2021 and 2024. Readers may request a demo at Datamar’s website, linked below.

Itacoatiara Exports | Jan 2021-Aug 2024 | WTMT

Source: DataLiner (click here to request a demo)

DNIT also confirmed that “the necessary permit for dredging was issued in June by the Amazonas Environmental Protection Institute (IPPAM), authorizing dredging in the Amazon Waterway,” and that “throughout the project duration, the agency will manage environmental activities in compliance with legislation.”

Source: Valor International