Reduced water levels in the country’s main transport river mean ships are loading less cargo
Buenos Aires — A once-a-century drought has lowered the water level of Argentina’s main grains transport river, reducing farm exports and boosting logistics costs in a trend that meteorologists said will likely continue into 2022.
“This is about a once-in-a-hundred-years event. That’s the type of frequency we are looking at,” said Isaac Hankes, a weather analyst at Refinitiv, the financial and risk business of Thomson Reuters. Logistics costs are rising as more soya and maize must be trucked to the Atlantic ports of Bahia Blanca and Necochea, in southern Buenos Aires province, where ships make a final stop to be topped up with cargo before heading out to sea.The drying trend in Brazil started in 2019. The next year was drier and 2021 has been the driest of the three years, Hankes said. The effect on the river is cumulative.
“It could even get worse after the rainy season,” said German Heinzenknecht, a meteorologist at consultancy Applied Climatology.
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