Fertilizer Importers Clash with Port of São Francisco do Sul Over Ship Delays

Renan Saldanha da Silva, Secretary of the Santa Catarina Association of Fertilizer Importers (Acia), accused the São Francisco do Sul Port Authority of lying about delays in unloading fertilizer ships waiting to moor. He claims the port’s explanations were meant to “please the governor” and “downplay the impacts and problems caused by the port.”

Last week, port management acknowledged that the waiting time for unloading cargo increased due to higher demand and the backlog of ships caused by heavy rains in July and August. However, they denied any risk of fertilizer shortages to the state’s farmers. According to the port, the average wait time for fertilizer ships was 12 days but reached 17 days in July, with six ships waiting in line last week.

Acia, in response, stated that the average waiting time was actually 19 days in July, with one ship waiting as long as 58 days. “Since June and July, we’ve been dealing with a queue of 15 to 21 ships on standby, waiting for their time to dock and unload fertilizers,” said Mr. da Silva. He is also the manager of Eleva Química, one of Acia’s eight companies, which accounts for 90% of the fertilizer volume delivered in the state.

Queue-jumping Accusations

The Port of São Francisco follows Resolution SCPAR PSFS No. 038/2022, which gives preferential docking to a maximum of three ships laden with fertilizers. This measure is unpopular with both fertilizer importers and the Santa Catarina Industries Federation (Fiesc), which wants the rule reviewed. Fiesc argues that the rule hampers the delivery of materials to the steel industry, such as steel itself, which supplies local metalworking companies. Acia, on the other hand, claims the resolution lacks fairness for importers and alleges that it is being used to favor a particular shipping company due to “political lobbying” with the port.

“The port has for years been doing something that isn’t regulated under Resolution 38, which is unloading the ship and then, without returning it to the queue, loading it with wood exports. This creates a financial advantage for the exporter G2 Ocean,” said Acia’s secretary, accusing the port of favoring queue jumpers.

A meeting is planned to discuss the issue with the governor. If the rules are not changed, the importers’ association does not rule out filing a complaint with the Public Prosecutor’s Office or requesting the Court of Auditors to audit current regulations.

The Federation of Farming Cooperatives emphasized that the delays pose a risk that companies importing raw materials for fertilizer production may not be able to meet farmers’ needs in time for planting. The delays also result in losses for importers due to the cost of idle ships, which ranges from $25,000 to $35,000 per day. The port claims it is working to reduce the backlog but admits that demand has surged without a corresponding expansion of berthing capacity.

Source: Diarinho.net

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