Amazon River waterway faces drought
The severe drought affecting the state of Amazonas and the namesake river is already impacting cargo shipping and could affect the flow of products from the Manaus Free Trade Zone, according to logistics companies operating in the region. The dry season, generally from October to December, usually reduces the level of the region’s rivers. Still, the situation started earlier this year, showing signs that it will be more severe and lasting.Vessel traffic on the Amazon River is already restricted in the region around the mouth of the Madeira River. Regular ships with an 11.5-meter draft can no longer navigate at total capacity, and night traffic has been blocked. There is a risk that vessels will no longer be able to pass through the most critical stretches of the river within a week or two. In addition to the Madeira mouth bay, there is another problematic point in the Tabocal area."The water level is falling at a breakneck pace. Last year, the flow was [being reduced by] 15 centimeters per day, while this year it is falling twice as much, around 31 centimeters per day. In 2022, when the drought was not so severe, the loss of capacity was 40%, and now it could reach 60%," said Luis Resano, executive director of Abac (Brazilian Association of Cabotage Shipowners).The shipping industry group estimates that the Amazon River depth could be already below 8 meters, a level it last reached in 2010, during the last major drought in the region.Even if alternatives such as the arrival of smaller ships or the use of road-river routes (with trucks and ferries) are deployed, the crisis could cause a drastic reduction in transport capacity and a significant cost increase, according to industry and logistics companies."We are already seeing the higher cost. Two weeks ago, shipping companies started charging ‘drought fees,’ which started at R$3,000 per container and have now reached around R$10,000. And since a week ago, they stopped taking reservations until mid-October, anticipating navigation restrictions," said Márcio Salmi, executive director of logistics company Costa Brasil, which works with cabotage, road, and air transport.The company has sought to reinforce the road-river alternative, which combines trucks and ferries capable of traveling in shallower waters. However, this is 50% more expensive and has a smaller capacity. "It’s unfeasible to think that the truck will meet all the demand," he said.According to logistics companies, the situation...
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