Brazil’s main ports are grappling with reduced capacity as peak season winds down, leading to skipped port calls, rerouted cargo, and delays in vessel schedules. Exporters are facing difficulties securing empty containers as ports prioritize clearing backlogs.

The Port of Santos has reached operational capacity, and ships have been forced to skip berthing windows or have omitted the port, resulting in cargo rolls, sources report. Brazil’s exports face the most setback as dockworkers focus on clearing the backlog. Subsequently, the return of empty containers to exporters has become a lower priority, with the shortage particularly pronounced for 20-foot containers commonly used for sugar and specialty commodity exports.

Several terminals in Santos have expanded berthing areas however, issues persist due to ongoing construction at nearby ports. Navegantes is undergoing renovations, adding to logistical challenges, while congestion at Itapoa has driven more traffic to Santos and compounding delays. Some relief has come from the Port of Itajai, which has absorbed some cargo.

Brazil’s slowdowns follow earlier disruptions caused by the October strike at U.S. East and Gulf Coast ports, which led to vessel bunching and delayed schedules. Despite the bottlenecks and increased volumes, space on vessels from Asia and North America bound for Brazil is still available.

Source: Journal of Commerce