Cargo movement slows at Brazil southern port amid flooding, officials say

The Rio Grande port authority said the impact of excess rains and heavy flooding on cargo shipments will only be possible to assess at the end of the month, according to a statement released on May 17 in response to questions from Reuters.

Bad weather has constrained and continues to constrain cargo movement at Rio Grande, which is the fourth largest in the country for soy exports and third largest for fertilizer imports.

On top of playing a paramount role in the aid of flood victims, the Port of Rio Grande’s importance also stands unparalleled in terms of foreign trade in Brazil’s southernmost state. The chart below builds on DataLiner data to show Rio Grande Port’s container throughput (exports and imports), measured in TEUs.

Rio Grande Container Throughput | Jan 2021 – Mar 2024 | TEUs

Source: DataLiner (click here to request a demo)

On Tuesday (14), the Rio Grande port authority had set a new draft of 12.80 meters (41.99 ft) for vessels at three grain terminals. Despite disruptions, all terminals have continued to operate, the port authority said.

The Rio Grande port is located in the south of Brazil’s Rio Grande do Sul state, a big grains and meat producer and exporter.

In recent days, the deadly floods have hampered meat production and the harvesting of rice, corn and soybeans in Rio Grande do Sul. The waters hit food silos and affected critical infrastructure, including access to the Rio Grande port.

According to emergency services, entire towns were submerged while the water killed livestock and at least 154 people. An estimated half a million people are dislodged out of a total 2.2 million affected, they said.

Southern Brazil’s location at the confluence of tropical and polar currents has fed periods of increasingly intense drought and rains due to climate change.

Grain traders which operate in the area have also been affected directly.

Two weeks ago, Bunge temporarily halted its Rio Grande soy crushing facility and port terminal because forecasters predicted more rains and flooding in the region.

On Friday, May 17, Bunge told Reuters the facilities remain closed and will only resume operations when it is deemed safe.

Source: Reuters

Click here to access the original story report: https://www.reuters.com/world/americas/cargo-movement-slows-brazil-southern-port-amid-flooding-officials-say-2024-05-17/

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