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Record low water levels on the Amazon River are disrupting cargo flows to and from Brazil’s seventh-largest port and the nearby free trade zone.
Two major container carriers – CMA CGM and Maersk – have advised customers that direct service to the port of Manaus is suspended until further notice.
The port, the main transport hub for the upper Amazon basin, ison the Rio Negro, near where it meets the Solimoes River to form the Amazon. Monday’s reading on the port’s website shows the lowest water level since records were established in 1902, with the water still receding further.
Some communities further up the river are virtually cut off from transport services as the water has become too shallow for navigation. A barge that was moving trucks and empty gas tanks has been stuck on a sandbank since last month.
The federal government has set up a task force to mitigate the impact of the severe droughthitting the region, and move emergency supplies of water, food and medicine to the affected communities. It has also allocated BRL41m ($8.2m) for dredging to re-enable navigation on the river.
However, the state government of Amazonas is preparing for what is believed to be the worst drought the region has experienced. and it is exacerbated by the El Niño phenomenon and by the warmer waters of the tropical Atlantic Ocean, which produce air currents that obstruct the formation of rain clouds.
According to one report, as many as 90% of the regular vessels on the river are now operating with some kind of restriction in Amazonas, and the state has called for cargo capacity to be halved.
This is affecting the movement of supplies to the region and its exports, from grain to mobile phones and other consumer electronics produced in the large free trade zone in Manaus. And officials have warned of possible disruptions to grain exports.
On Friday, CMA CGM alerted customers that the conditions “have reached an alarming level”, limiting container vessel accessto the port. It added: “As a result, CMA CGM has no other option than to divert its vessels [on the Manaus Shuttle Service] to other ports.” Vessels would instead discharge cargo for Manaus and Vila do Conde at the ports of Pecem and Fortaleza.
Earlier the container line had announced a low=water surcharge in Manaus from 25 September of $750 per teu, rising to $1,100 per teu from 25 October.
Marsk has also informed its clients of contingency plans to cope with the worsening conditions on the Amazon. It said: “Our feeder provider Alianca declared force majeure, and the cargo on board vessels bound for Manaus will be discharged in alternative ports.”
And the container lines cannot make predictions when cargo can return to Manaus.CMA CGM said: “The weather conditions that generated these restrictions are unstable, which does not allow us to accurately provide a forecast of improvement. Cargo onboard these vessels will be shipped to Manaus as soon as the water level allows.”
As water levels were still declining yesterday, there seems little hope of improvement in the near future. Observers expect the drought to last longer than usual, pointing to adverse weather and smoke from wildfires in the Amazon region. Some predictions are for the rainfall deficit in the region to last until the latter half of December,possibly into next year.
This raises the possibility of further shipping restrictions in the area, which would send freight rates higher still.
For now, Maersk offers a limited alternative transport option that combines truck and barge service between Vila do Conde and Manaus. This does not apply to hazardous and refrigerated cargo.
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