Schedule disruptions on the North-South trade lane have resulted in port delays, which are spreading across South America’s East Coast. Vessels arriving late from the U.S. are causing delays for cargo leaving ports in Brazil, Argentina, and Uruguay. JOC analyst and CEO of Vespucci Maritime, Lars Jensen, previously warned that the ripple effects from the U.S. dock workers’ 3-day labor strike at U.S. East and Gulf Coast ports would continue through mid-November. He noted that the delays would impact South American exports after three to four weeks after the end of the ILA strike.

Meanwhile, Brazil’s recent port worker strike has disrupted port operations, adding to the challenges. Approximately 60,000 port workers across Brazil went on strike on 22 October for 12 hours to protest new labor laws, with 20,000 workers striking at Santos port.

These disruptions and congestion are driving up export shipping rates. Spot rates for cargo from East Coast South America to the U.S. Gulf Coast have jumped to $5,800 per FEU – over 250% higher than last October. In contrast, Southbound rates for U.S. Gulf Coast exports to South America East Coast is at $975 per FEU.

Source: Journal of Commerce