Ships stop carrying cargo and factories may stop due to drought in Amazonas

Manaus (AM) — The historic drought in Amazonas threatens to stop starting next week at factories in the industrial hub of Manaus (PIM), where national production of household appliances, electronic devices and motorcycles is concentrated. Conditions for transporting cargo along the Amazon River and its tributaries have worsened drastically in recent days, causing delays in the delivery of materials, as well as an accumulation of finished products in factory stocks.

So far, the situation has been managed with production rearrangements that have avoided the complete stoppage of the lines. However, with logistical stress approaching the limit, with no prospect of normalizing navigability in the short term, some companies called meetings to discuss the adoption of collective holidays in the coming days.

The association that represents household appliance manufacturers, Eletros, and the region’s metalworkers’ union confirmed the information.

The largest vessels are no longer able to access the port of Manaus due to the reduction in the water level in critical stretches to below the minimum depth necessary for the safe passage of deep-draft ships. The alternative is to transport cargo by ferry between Manaus and the Vila do Conde port, in the municipality of Barcarena, Pará, where the ships are transferring the cargo.

Ferries, depending on the weight loaded, can pass through sections with a depth of less than 2 meters, ships need at least 8 meters. However, ferries carry only 10% of a ship’s cargo and are unable to develop much speed, due to current navigability restrictions, increasing travel time.

Alternative solutions also imply higher transportation costs, given the additional expenses of storing materials for longer at ports and unforeseen container transfers. According to Augusto César Rocha, coordinator of the logistics commission at the Amazonas State Industry Center (Cieam), the setbacks increased the freight cost in the region by between 25% and 50%, depending on the contract.

The president of Eletros, Jorge Nascimento, says that the entity has already received information from members that unions have been called to discuss the adoption of collective vacations in factories. He explains that industries are having difficulty receiving inputs and also need to balance stocks, which are increasing in their yards because goods are not being dispatched regularly.

The president of the Amazonas metalworkers’ union, Valdemir de Souza Santana, stated that notices had reached the entity about plans to stop production not only in the electronics industry, but also in the motorcycle industry. “Some companies will only have raw materials in 15 days”reports.

So far, the industry has ruled out the risk of products running out of stores during Black Friday, the last Friday of November, the 24th. On the other hand, the river needs to rise again to ensure normal Christmas deliveries, which will take place from the end of this month.

As the drought in the North of the country is a seasonal phenomenon, the industry brought forward production and deliveries in recent months to avoid shortages. Even so, the 2023 drought, worsened by El Niño, exceeded expectations and could be the largest in history, affecting an even larger area and lasting until the end of the first half of 2024.

Logistics operators warned customers throughout this week that there is no forecast of when large ships will return to Manaus.

According to Rocha, from Cieam, a meeting was scheduled for next Friday (20), with the National Waterway Transport Agency (Antaq). Representatives from the National Department of Transport Infrastructure (Dnit) were also invited, which is responsible for carrying out dredging, which is the excavation of the bottom of rivers. The objective is to form a crisis committee.

The coordinator of Cieam’s logistics commission says that an internal survey identified any impact of the drought on the production of only 4% of the region’s industries. The low percentage shows that the sector’s preparation for the drought is, for now, working. Rocha considers, however, that the rivers could continue to lose levels and the situation could worsen until the end of next month if dredging work does not begin soon.

“We have the beginning of a historic problem. The concern is what the situation will be like on November 30th. If you guarantee 8 meters [profundidade mínima para a passagem dos navios]the crisis passes” comments Rocha.

*With exam information

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