Record Drought Impacting Amazon Basin Shipping

October 18, 2023

 

Record Drought Impacting Amazon River Shipping

 

Following on from Envío reporting the drought impacting Amazon Basin shipping last month, alarming water levels have now led to Maersk and CMA CGM suspending direct services to Manaus, Brazil’s seventh largest port.

Low water levels are disrupting cargo flows to the port and nearby free trade zone on the Rio Negro River, one of the largest tributaries of the Amazon River. Water levels in the region continue to recede having reached their lowest ebb since records began in 1902.

Communities further up the river have been effectively cut off from transport services due to the shallow waters and there are reports of a stranded cargo barge being stuck on a sandbank since last month.

Due to the limited access for container vessels, both carriers have announced contingency plans to divert vessels from calling at the ports of Manaus and neighbouring Vila do Conde.

Last month a low water surcharge was introduced of $750 per teu, which was due to rise to $1,100 from 25th October. However, the worsening conditions could lead to these figures being adjusted further.

The Envío team are monitoring the developing situation closely. Should you require further information, then please do not hesitate to contact us.

 

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