Brazilian Container Port Saturation Causes Billion-Dollar Losses

Brazil’s container ports are facing severe congestion, a worsening infrastructure bottleneck that intensified in 2024, leading to billions in losses.

A Folha investigation, based on throughput data from major container terminals and interviews with industry stakeholders, reveals widespread shipment delays and cancellations. The root causes include inadequate port infrastructure, inefficiencies in logistics operations, and flawed management models.

In 2024, Brazilian ports handled 5,663 container shipments. Of these, only 1,277 (23%) departed on schedule, while 3,219 shipments were delayed. Another 1,167 were either canceled or skipped due to “blank sailings,” where scheduled port calls are bypassed as vessels divert to avoid congestion. These figures, compiled by consultancy Solve Shipping and consolidated by the National Confederation of Industry (CNI), underscore the deepening crisis.

The crisis is partly driven by a mismatch between soaring container trade and infrastructure expansion. Since 2010, Brazil’s container throughput has more than doubled, climbing from 6.8 million tonnes to over 13.9 million tonnes in 2023.

The strain is evident at the country’s busiest ports. In Santos, the Detention Zero report drafted by the Brazilian Coffee Exporters Council (Cecafé) found that 84% of vessels experienced delays in 2024, averaging 12 days. In Rio de Janeiro, 56% of ships missed their schedules, with an average delay of 15 days. At Portonave, 56% of vessels were delayed, with an average wait time of five days.

The coffee industry, which relies on containers for exports, quantified the logistical damage last year. By December 2023, Cecafé recorded 1.8 million bags of coffee—5,800 containers—left stranded at ports, resulting in $555 million in lost revenue.

Beyond trade balance losses, exporters also incurred steep logistics costs. Between June and December 2024, coffee exporters faced an extra R$ 51.5 million ($10.4 million) in expenses due to port delays. “At one point, we had cargo stuck at ports for up to three months,” says Cecafé’s technical director, Eduardo Heron.

“This isn’t just a coffee industry problem—it’s a widespread issue for any sector reliant on containers, from chemicals and frozen meat to lumber, sugar, and pulp,” says CNI infrastructure specialist Ramon Cunha.

Containers represent only 8% of Brazil’s total export volume, but they account for 40% of the country’s export value due to their high-value cargo, he adds.

Beyond infrastructure constraints, users have raised concerns about service failures by shipping companies. One of the most disruptive issues is “no-load cargo”, where shipments are canceled even after containers have been delivered to terminals—typically due to port congestion.

“This is our biggest worry,” says Saulo Marquezini, government relations manager at BMW Group Brazil. “Skipping a port because of long queues causes serious delays. It has already disrupted our production schedules and even delayed new car launches in Brazil.”

Shippers also complain about “rollovers”, where cargo is transferred to a later vessel, and “canceled port calls”, where a scheduled docking is scrapped. Adding to frustrations are demurrage fees, charged when containers exceed their free storage period at terminals.

Stakeholders are calling for stronger oversight and transparency in port and shipping operations.

Brazil’s container throughput hit a record high in 2024, rising 20% year-over-year to 153.3 million tonnes. However, the surge exposed systemic weaknesses, preventing even stronger performance.

Global benchmarks suggest container terminals should operate at no more than 65% capacity for efficient flow. Brazil’s busiest terminals, however, ran dangerously close to full utilization in 2024:

• Santos Brasil (SP): 76% capacity
• Brasil Terminal Portuário (SP): 73%
• Portonave (SC): 78%
• Itapoá (SC): 91%
• Paranaguá (PR): 81%
• Multi-Rio (RJ): 94%

The crisis has prompted emergency meetings between industry representatives, the National Waterway Transport Agency (Antaq), and the Ministry of Ports and Airports (MPor). While stakeholders recognize recent efforts to address bottlenecks, they are demanding faster action.

“We see positive steps being taken, but solutions need to be accelerated because container volumes will only keep growing,” says Mario Cezar de Aguiar, president of the Santa Catarina Federation of Industries (Fiesc), representing Brazil’s top poultry-exporting state.

In a joint statement, MPor and Antaq highlighted ongoing port expansion initiatives, including the Tecon Santos 10 terminal auction, now in the public consultation phase. “This project alone is expected to boost Santos’ capacity by 50%,” they noted.

The chart below compares containerized exports and imports at Brazil’s Port of Santos – the country’s largest container port. The data was derived from Datamar’s DataLiner.

Port of Santos Exports and Imports | Jan 2021 – Dez 2024 | TEUs

Source: DataLiner (click here to request a demo)

The current administration plans to hold 60 port auctions by 2026, expanding national port capacity.

Additionally, the government launched the Navegue Simples Program, aimed at streamlining cargo operations—including containerized shipments—by cutting red tape in new concession approvals.

In the short term, authorities plan to fast-track approvals for Private Use Terminals (TUPs). The next phase will focus on shortening lease terms for public terminal concessions to accelerate expansion.

By André Borges

Source: F. de São Paulo

Sharing is caring!