Miritituba and Barcarena await soy supply

Last night, Brazil’s National Transport Infrastructure Department (DNIT), announced that the BR-163 is now operating normally, releasing a queue of around 8,000 trucks. The road closure, caused by heavy rain, has significantly impacted grain supplies to the river ports of Miritituba and Barcarena. Logistics operator, Hidrovias do Brasil, has been hit hard; since Tuesday, they have not received any trucks. On a normal day, Miritituba receives 300 trucks per day via the BR-163, equivalent to 40,000 tons of grain.

According to Reuters, Barcarena is in danger of running out of soybeans today. Trading companies risk having to pay demurrage fees to carriers, which could cost up to US$25,000 per day of delay. Under normal conditions, it takes about 9 hours to travel to Bunge’s Miritituba Terminal from Novo Progresso, according to Google Maps:

The Brazilian Vegetable Oil Industry Association (Abiove) estimates that the Port of Barcarena has missed out on shipping 310,000 tons of soybean due to the stoppage. Brazil’s National Cereal Exporters Association (Anec) estimates the 10-day long road-blockade will cost the nation R$2bn in losses.

28% of Brazil’s soybean and corn exports go through Northern Arc. Grain arriving at Mirituba in Pará by truck is unloaded and then sent in barges to Barcarena. Shippers prefer the Port of Barcarena due to its proximity to the Panama Canal, reducing the distance to export to Asian countries, such as China, as well as the USA and Europe.

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