Cargo ships that pass through the Paraná River, an important grain outlet in Argentina, the third largest exporter of soybeans and corn and the main supplier of soybean meal, are having to reduce their capacity after a historic low in the river level and obstruction of the navigation channel.
A ship that normally carried around 50 thousand tons is reducing its capacity by at least 10 thousand tons to sail with an adequate safety margin.
Experts from the Rosário Stock Exchange released a report detailing the consequences of this obstruction on the Paraná River. Last week, the river level measured by the hydrometer located in Rosário had a sharp drop, to 0.4 meters, the lowest level since 1971. The ideal would be 2.47 meters.
According to the exchange, the river's situation implies enormous logistical, transport and industrialization problems, with an associated cost of US$ 244 million to the local industry in the last four months. Around 80% of Argentina's agricultural and agro-industrial exports are sent through Rosario.
“From these port terminals, 67% of grains, 96% of flour and 93% of vegetable oils exported by the country in the period were dispatched in 2019,” said the exchange report. Dredging work is being carried out in Rosário, but there is no forecast for activities to resume at normal levels.
Source: DATA
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