Turkish port closure affects Brazilian exports through Port of Santos

Brazilian cotton exporters are diverting their shipments to the Port of Mersin in Turkey following the closure of the Port of Iskenderun in southern Turkey. A fire hit the main destination for cotton exports from Brazil on the 7th due to an earthquake that devastated Turkey and Syria in the early hours of February 6th. The tremors reached magnitude 7.8, leaving more than 45,000 dead in both countries.

According to Miguel Faus, the president of the National Association of Cotton Exporters (Anea), between July 2022 and January 2023, 111 thousand tonnes of the commodity were shipped to Turkey. However, it is still not possible to estimate how the closure of the Port from Iskenderun will impact export numbers at the end of the day.

“The latest shipments have not yet reached their destination, but the drop in shipments to Turkey should be significant in the short and medium term, as we still don’t know how long it will take for the industry to return to pre-earthquake conditions.”

Due to the earthquake, cargoes are already being diverted to Mersin Port. “The cargo that arrives in Turkey is now diverted to the Port of Mersin. The problem is that this port is smaller than Iskenderun and is already congested. Therefore, some cargo is also starting to be diverted to other destinations in the Middle East.”

Regarding possible losses of income due to the incident, Faus pointed out that, at the moment, it is still too early to know. Still, any eventual loss should be impactful for the sector, mainly for the textile industry in Turkey. This important market consumes 1.8 million tonnes per year of cotton, with 1 million tonnes of foreign origin.

Ports

The Port of Santos carries 96% of the country’s export cotton volume, followed by Paranaguá, Salvador, and Manaus. However, the Santos complex did not record shipments of the product bound for Turkey between November 2022 and February 2023.

“Cotton shipments through the Port of Santos were destined for the United States, Colombia, Uruguay, China, India, Morocco, Panama, the Dominican Republic, Singapore, and Argentina. No shipments to Turkey,” said José Roque, executive director of the Union of Maritime Navigation Agencies of the State of Sao Paulo (Sindamar).

However, Roque assessed that “the fire on port and the change of routes will cause an operational bottleneck in the Port of Mersin.” He also recalled that Brazil is the second largest cotton exporter in the world, behind only China.

“In recent years, Brazil has passed India and became the second largest exporter of cotton. Brazilian exporters will look for other ports in Turkey, as shipments take place in containers since it can spontaneously combust in contact with water, representing a high risk if shipped in bulk.”

Source: A Tribuna

To read the original news reporting, please acces: https://www.atribuna.com.br/noticias/portomar/porto-turco-fecha-e-afeta-exportacoes-brasileiras-pelo-porto-de-santos

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