May 11, 2020

Argentina's grains exports disrupted by riverbank collapse at the Parana River

Cargo from the country's Rosario grain hub are forced to reduce cargo as the Parana River collapse had obstructed the navigation channel, reported Reuters.

Dredgers are currently restoring the Parana for export traffic but there is no projection as to when operations will return to normal.

Guillermo Wade, Chamber of Port and Maritime Activities (CAPyM) manager told Reuters that ships cannot depart as there is not enough safety margin. Ships can only make the journey if they loaded with less cargo.

Ships are forced to reduce cargos of 50,000 tonnes of grain to only 11,000 tonnes.

Argentina is the third biggest exporter of soybean and corn in the world, and a major supplier of soymeal livestock feed for swine, cattle and poultry in Europe and Southeast Asia.

The shipment disruptions may affect global trade flows, with exporters moving to rivals Brazil and the United States for supplies.

80% of Argentina's agricultural and agro-industrial exports come from Rosario.

Parana River's water level has dropped to its lowest in 50 years, affecting export traffic and impacting the local industry with losses amounting to US$244 million in the last four months.

Gustavo Idigoras, the national chambers of grains exporters and processors (CIARA-CEC) head said the riverbank collapse had occurred during peak season for soy and corn exports.

-      Reuters