The main river system of Brazil has dried and posed a threat to world trade. As Bloomberg writes, which have become uncomfortable waterways blocked access to the market with the largest supplier of raw materials.
According to the National Navigation Network Operator, the Parana River Basin in the central part of the country is experiencing the most serious water deficit for 91 years – the June stock dropped to the lowest level in the entire history of observations and amounted to 55 percent of the average monthly value. The second largest river system in South America provides electricity and water industrial south of Brazil and maintains the level of rivers in neighboring countries, where drought has difficult for shipping.
Water problems in one country will break the supply chain throughout the continent – the place impassable for cargo ships will arise in Argentina and Paraguay. And considering that Brazil is the world’s largest exporter of soybeans, coffee and sugar, as well as the second largest corn and iron ore supplier – the global economy expects a serious lack of raw materials.
Vice-President of the National Federation of Water Navigation Companies Lisio Rizza Roca said that Subbassane Tiet-Parana for the first time since 2014 is close to stopping work – it is transported by grain in export terminals. He added that the water level on the key section of Avanhandava fell below the minimum required for navigation.
Low Precipitation The second year in a row creates problem areas on Waterway Paraguay-Parana, which is used by the Brazilian mining company Vale as a more budget alternative to automotive and rail transport to deliver ore. According to Jose Renato Ribas Phial from the Agency Agency Antaq, soon navigation to Paraguay Paran may stop. In addition, it ceased to be so profitable – due to the risk, it is less cargo due to the risk, which increases the time and cost of transportation.
The Madeira River in the southern part of the Amazon region also dries more often – this waterway is used by the logistics company Transportes Bertolini for the carriage of grain and oilseed crops. The chairman of Irani Bertolini admitted that in 2021 he would reduce the volume of goods a month earlier than last year’s drought season.
In addition to drought at the end of July, Brazil Nastig is an unprecedented cold. The air temperature fell below zero and destroyed a significant part of the future coffee crop.