Logistic chaos affects mean exports from Paraguay and Uruguay

Interruptions in global shipping and drought-stricken rivers threaten to reduce Uruguay’s and Paraguay’s beef exports as rising food prices fuel inflation worldwide.

In land-locked Paraguay, slaughtering should decrease 20% to 25% this month due to the lack of containers, higher freight rates, and uncertainties regarding transport deadlines, said Korni Pauls, deputy -president of the Paraguayan Chamber of Meat.

Uruguayan meatpackers also warned of potential production cuts next month. Frozen meat is piling up in refrigerated warehouses as container ships are diverting from the port of Montevideo in favor of more profitable calls.

The tightening of the container market and overloaded ports in the US, Europe, and Asia are causing shipping companies to cancel stops at ports on the Atlantic coast of South America.

See below a history of the volumes of beef exported by Brazil, Paraguay, and Uruguay since 2019. Data are from DataLiner:

Beef Exports (HS 0202) from Brazil, Paraguay, and Uruguay | Jan 2019 to June 2021 | WTMT

Source: DataLiner (To request a DataLiner demo, click here)

Source: Valor Econômico

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https://www.infomoney.com.br/economia/caos-logistico-abala-exportacao-de-carne-do-paraguai-e-uruguai/

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