Drought Hits Argentina's River Trade: Grain Exports Suffer

Ships loading soybean and corn at Argentina's inland river ports are taking on less cargo due to low water levels in the Parana River caused by a major drought upstream in Brazil. The low levels are increasing costs and transport times, affecting grain exports significantly.

Argentina's major inland river ports are facing significant disruptions as drought hits the Parana River, leading to lower cargo loads of soybean and corn. The drought is due to extreme weather conditions in Brazil, causing severe drops in river water levels and escalating transportation costs.

The Parana River, responsible for nearly 80% of Argentina's grain exports, is at its second-lowest level in decades, according to data from the Rosario grains exchange. Industry insiders report that ships are loading thousands of tons less cargo, with water levels far below the seasonal norm.

The implications are dire as more ships will be needed to transport grains, leading to increased costs and potential losses for the agro-industry. Neighboring countries like Paraguay are also affected, highlighting the broader impact of climate change on South American waterways.

(With inputs from agencies.)