- Brazilian ports faced a significant surge in congestion.
- Brazil holds the position of the world’s largest grain exporter.
- Virtual arrival adjusts ship speed during the voyage to ensure arrival.
In 2023, Brazilian ports faced a significant surge in congestion for ships loading grain due to robust harvests and low water levels in the Amazon River, reports Bimco.
Impact of Congestion
Between January and November, the average waiting time for ships increased to 15 days, a notable rise from the previous average of nine days between 2018 and 2022. This exceeded the global average of five days for grain loadings in 2023.
Brazil’s Dominance in Grain Exports
Brazil holds the position of the world’s largest grain exporter, contributing 24% of global exports in 2022. The export volume surges during soybean harvests starting in March and maize harvests during the summer.
Cause of Congestion
ANEC, Brazil’s grain exporters’ association, attributed this year’s high congestion to insufficient storage during harvest months, compelling farmers to boost exports rapidly, and overwhelming the ports. Additionally, low water levels in the Amazon from September disrupted shipping in the northern regions, worsening the congestion.
Future Challenges
Brazil’s strong grain export projections suggest that congestion might persist in the coming years, necessitating better management strategies.
Proposed Solutions
Implementing virtual arrival or just-in-time systems could substantially reduce waiting times, leading to significant savings in bunker costs and carbon emissions. Allowing ships to enter the queue before arrival enables them to opt for slower sailing speeds, reducing fuel consumption and emissions.
Virtual Arrival and Just-in-Time Systems
Virtual arrival adjusts ship speed during the voyage to ensure arrival at the scheduled time, minimizing detention charges. Just-in-time systems require precise scheduling for ships to arrive precisely when needed at ports, enhancing efficiency.
Global Significance
While Brazil’s case is extreme, it underscores a prevalent worldwide issue. The practice of ships sailing at regular speed, emitting excess carbon while waiting in congestion, is inefficient and wasteful. Collaborative efforts among ports and the supply chain are crucial for implementing innovative queuing solutions to aid the shipping industry’s decarbonization.
Call for Action
Ports globally should prioritize implementing new queuing solutions to address inefficiencies, ultimately contributing to the shipping industry’s efforts to reduce carbon emissions.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Bimco
