Brazil grain barge shipping returns as Amazonian drought subsides

By Roberto Samora

SAO PAULO (Reuters) - Transportation of soybeans and corn on barges along the Brazilian Amazon's Tapajos River, which had been suspended in early October due to dry weather, resumed at 50% capacity this week, operators said on Wednesday.

Shipping began again on that waterway, which receives grain cargos from Brazil's biggest farm state Mato Grosso and nearby areas, as rain raised river levels, said Amport, an association representing port terminals and cargo transshipment operators of the Amazon basin.

Barge shipping on the Madeira River, another Amazon waterway, returned to normal this week, Amport said. Grain transportation on the Madeira had been halted in September, even earlier than on the Tapajos River, amid a severe drought in the world's largest rainforest.

"The Madeira River has seen a significant recovery in water levels over the last 15 days, which has allowed navigation to resume at full capacity," said Amport, whose members include Cargill, Hidrovias do Brasil, Louis Dreyfus and Unitapajos, a joint venture between Amaggi and Bunge.

Cargill, Amaggi, Hidrovias do Brasil and Bunge declined to comment. Louis Dreyfus did not have an immediate comment.

Northern ports including Barcarena, Itaqui, Santarem and Itacoatiara accounted for nearly 34% of Brazil's soybean exports in 2023 and 42.5% of total Brazilian corn shipments last year, according to data compiled by Brazilian crop agency Conab.

When the drought hit, Brazil had shipped most of its soybeans for the 2024 season. A smaller corn crop meant less logistics pressure for the Amazonian barge system, Amport said.

Preemptively, traders had directed more cargo to ports to Brazil's south and southeast ports, grain exporters association Anec said, adding that this diversion increased costs.

Itaqui access does not depend on rivers that were affected by the drought while Santarem and Itacoatiara tended to be more affected, Amport said.

(Reporting by Roberto Samora; Writing by Ana Mano; Editing by Rod Nickel)