March 31, 2020

Argentine soy exports delayed due to COVID-19 inspections

Industry sources said exports of soybeans, soymeal, corn and other agricultural products from Argentina face massive delays as the government increased COVID-19 inspections on cargo ships, reported Reuters.

While the COVID-19 pandemic has not affected crop harvests, exports have slowed down as municipal authorities stopped grain trucks from transporting through their provinces.

Coastguard inspections were conducted at the Rosario ports hub (main area where grain shipments are exported from), against government orders that deemed export activities essential last week.

The local maritime agency, NABSA said 21 ships have been delayed in Rosario.

According to an internal report from Argentina's CIARA-CEC export companies' chamber, labour unions from Argentina's port workers have requested a two week quarantine for ships entering the country because of COVID-19 concerns.

Argentine shipping disruptions could affect global trade flows as importers from Europe and Southeast Asia shift to rivals Brazil and the US for chicken, swine and cattle feed supplies.

Argentina is the third biggest corn and row soybean exporter in the world.

The COVID-19 outbreak in Argentina comes at a bad time as the government looks to restart a shrinking economy and prevent defaulting on its bonds.

-      Reuters