The dry period affecting the northern region of the country is already affecting navigation on the Amazon River and could reduce its transport capacity by 40% in two weeks and up to 50% by October. The estimate is from the Brazilian Association of Cabotage Shipowners (Abac), which monitors the flow at three different points, having identified a daily drop of up to 35 centimeters, while the average for this period is 25. The sector is charged for emergency actions , which, according to the government, are being studied.
Drought is seasonal and is observed every year. This one, however, would have arrived sooner than expected.
Since August, the Brazilian Navy decided to restrict navigation on rivers in the State of Amazonas, reaching three points: the Tabocal passage, 339 km from Manaus and the coves of the Madeira Enseada River and the Purus River with the Solimões River.
The fear of the shipping sector is that the next affected will be the Amazon River itself, the region’s main waterway.
In the worst case scenario, due to security, navigation along the Amazon River will not be possible. It turns out that the ships that sail through it are the ones that allow production to flow and maintain the region’s supply with basic inputs for the entire population and local industry. Last year, the reduction in transport capacity was, on average, 40%, compared to the 50% estimated for this year. The products that suffer the most impact are the heaviest, such as food (rice, frozen and chilled), cement, metals, ceramics, porcelain and fertilizers.
“Manaus is an island, with no production of items such as lettuce and rice. We are the ones who take the inputs there, the iron, the sand, the cement. And we also take the production made there. And as we are not able to navigate with the normal cargo volume, we already foresee a 45% reduction in our transport capacity for two weeks”, says the executive director of Abac, Luis Fernando Resano.
The crisis affects the population, which may result in a direct increase in the price of products, shortages and an increase in shipping. The Manaus Free Trade Zone is also impacted, which is unable to sell its products, which, depending on the duration of the crisis, could cause shortages in the market in the South and Southeast, especially on “Black Friday”.
Sector demands measures
Resano says that, although the drought problem is largely beyond human control, there are initiatives that can be used as mitigation. At this time, he states that emergency dredging is necessary in the Madeira River inlet in the section where it reaches the Amazon. “That area is silted up, with accumulation of sand. It would need dredging to open a channel so that ships can navigate close to capacity,” he says.
O Broadcast(Grupo Estado’s real-time news system) contacted the Ministries of Transport and Ports and Airports, as both have initiatives linked to the sector. The Ports department says that the body responsible for navigation safety is the Brazilian Navy, which indicates the possibilities or possible restrictions and the impracticality of traveling certain stretches.
“The Ministry of Ports and Airports, together with the National Department of Transport Infrastructure (Dnit), is monitoring the situation and is prepared to make the necessary intervention in the possibly indicated sections”, states the note.
Technology can be your ally
For Mario Veraldo, CEO of MTM Logix and former director of Maersk, the solution lies in technology combined with “strategic acumen”. He cites supply chain control towers as an example. “They offer centralized oversight of the entire supply chain, allowing companies to monitor their shipments, assess stock levels in real time and anticipate possible disruptions,” he says.
Parallel to the control towers, it advocates advanced navigation systems. “With the Amazon’s water levels showing unpredictable fluctuations, the scope for navigational error has diminished. These state-of-the-art systems, equipped with real-time data on water depths and possible obstructions, ensure ships navigate the river’s challenging terrains safely and efficiently”, explains Veraldo.
Another strategy highlighted by Veraldo is the adoption of smaller vessels. “While technology offers a multitude of solutions, sometimes the answer lies in revisiting traditional methods with a fresh perspective,” he argues. Even with higher costs, smaller vessels allow navigation in more challenging situations.
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