Brazil’s coffee exports hampered by port logistical challenges

Brazil’s coffee exporters are facing significant logistical challenges at the country’s ports. Eduardo Heron, director at the Brazilian Coffee Exporters Council (CeCafé), commented on the infrastructure problems affecting coffee shipments, especially at the port of Santos, the largest in Latin America, where around 70% of the country’s coffee exports occur.

Heron explained that there is an exhaustion of port capacity, not only in Santos but also in other Brazilian ports. This delays ship operations and the overuse of port terminal yards. These delays cause significant losses to exporters, estimated at approximately $119 million (around 600 million reais) in May 2024.

The chart below shows an overview of Brazilian historical data on coffee exports measured in tonnes between January 2021 and May 2024. The chart features information derived from DataLiner.

Coffee Bean Exports | Jan 2021 – May 2024 | WTMT

Source: DataLiner (click here to request a demo)

CeCafé has been working to establish a dialogue with public authorities and maritime carriers to mitigate these delays. The Santos Port Authority has shown interest in solving these logistical problems. Still, the solution requires significant investments in infrastructure, particularly for containerized cargo, which has not kept up with the growth in exports.

The challenges are not limited to the first half of 2024. With the expected increase in exports in the second half, including more coffee and other cargo such as cotton, the situation could worsen. Despite records such as the export of 4.4 million bags of coffee in May, the logistical scenario imposes an urgent need for investment and improvements in port infrastructure to ensure the normal flow of exports.

CeCafé is seeking solutions from various agents, including the National Waterborne Transport Agency (Antaq) and other stakeholders in the sector. The expectation is that without substantial improvements, logistical challenges could further impact Brazilian coffee exports shortly.

Source: Canal Rural

Click here to access the original text: https://www.canalrural.com.br/agricultura/mais-da-metade-dos-navios-de-cafe-ficam-parados-em-maio-perdas-chegam-a-r-600-milhoes/

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