Collapse in Paraná river bank further hampers Argentina’s grain exports

The collapse of a bank along the Paraná River navigation channel in Argentina, has affected the country’s capacity to make vital grain exports to Brasil. In order to try and restore the draft necessary to maintain exports, dredging work is being carried out south of the Rosário port complex, but there is currently no estimate as to when normal operations can be resumed.

According to the manager of Argentina’s Chamber of Ports and Maritime Activities, Guillermo Wade, “Ships cannot leave because they do not have an adequate safety margin”. According to him, the vessels need to reduce their cargo in order to pass. “A ship usually carries around 50,000 tons of grain. We are talking about 11,000 tons less per vessel,” he estimated.

Argentina is the third-largest global exporter of soybeans and corn and the main supplier of soybean meal from Europe to Southeast Asia.  Problems with shipments from Argentina could change global trade flows, as importers look for alternative suppliers such as Brazil and the United States.  Approximately 80% of Argentina’s agricultural and agro-industrial exports are shipped through the Rosario region.

The water level in the Paraná River had already dropped to a 50-year low, hampering export traffic and causing losses of up to US$244 million to local industry over the past four months.  According to the head of the local Chamber of Grain Processors and Exporters (CIARA-CEC), Gustavo Idigoras, the riverbank collapse exacerbates an already difficult situation for the Argentine grain export sector, which is in the midst of its peak exporting season for soybean, soybean derivative, and corn. “The ships that were loading at the 32 terminals in that area are taking even less (cargo) than they were before,” he said.

Source: Reuters

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