BUENOS AIRES, Sept 19 (Askume) – Large grain ships carrying soybeans and corn are carrying fewer cargoes at major inland ports around Argentina’s Rosario as a severe drought in Brazil has led to record low water levels.
Data from the Rosario Grain Exchange shows that the Paraná River, which transports about 80% of Argentina’s grains and oilseeds for export, is currently at its second-lowest level since 1970, with only a bigger drop in 2021.
The drop in river levels comes shortly after the last major drawdown, underscoring how more extreme weather related to climate change is affecting trade in the resource-rich region’s key waterway that supplies the world with food and metals.
Low water levels are causing huge ocean-going vessels anchored at river ports near Rosario to transport thousands of tonnes fewer cargo, industry insiders say.
“The water level in the Paraná River is really low,” Guillermo Wade, manager of the Chamber of Ports and Maritime Activities (CAPyM), told Askume in an interview.
“Their weight was 3 feet 8 inches less than what the river normally carries, which means it was about 15 percent less than their weight.”
The latest data from the Argentine Navy Department show that the water level of the Rosario Paraná River is 0.38 meters (measured according to the depth index “zero” rather than the river bed), which is much lower than the normal water level of around 2.5 meters this time.
The more ships, the more it costs
Water levels in major rivers in South America, including the Paraguay River, have fallen to record lows in recent weeks as severe drought in upland Brazil has caused water levels to plummet, disrupting navigation in Amazon waterways.
The Paraguay–Paraná System is a waterway over 3,400 kilometres (2,113 mi) long that passes through Argentina, Brazil, Uruguay, and inland Paraguay and Bolivia.
Argentina is the world’s largest exporter of processed soybean oil and cake, which is ground from soybeans in huge factories along the Parana River. The fact that large ocean vessels can travel up the river to Rosario gives the country a significant competitive advantage.
The Rosario Grains Exchange said in a report that the low water levels are unlikely to improve in the near future, which could mean that the number of ships needed to transport soybeans, corn and wheat over the remaining ten years will be many more than usual.
“With the peak wheat shipping season approaching, forecasts for the coming months are worrying. Sustained high water levels could cause significant damage to agriculture,” it said.
Neighboring Paraguay is the third-largest soybean exporter, and about 80% of the grain is shipped via water to river ports.
Rainfall is expected to be below normal in the second half of the year due to the La Niña weather phenomenon, which brings dry, cool weather to Paraguay and Argentina, although it typically results in wet weather in northern Brazil.
Brazil’s worst-ever drought has sent river levels in the Amazon to record lows, drying up much of the region’s vegetation and sparking wildfires across the South American country that have devastated cities.Engulfed in smoke .
