Grain Ships Stranded in Rosario Set Free

Published 2021년 5월 30일

Tugboat captains and other workers responsible for managing the flow of agricultural cargo ships launched a 48-hour strike during mid-May 2021 in Argentina’s Port of Rosario, causing agricultural exports to be backed up. Seven ships remained stranded at the Port, from which about 80% of the nation’s grain exports are shipped. The ships were loaded with soy meal, corn, and other farm products, and following the strike, the ships were unable to embark because they had been loaded with more cargo than could be carried on the Port’s increasingly shallow waters. Plans were made to tow the ships free, and the last of the vessels was set free on the 25th of May.

*A ship being towed. (Source: World Grain)*

Strikes over vaccines cause logistical problems

The strike was sparked by workers demanding to be classified as essential workers to obtain Covid-19 vaccines. Argentina is currently facing a severe second wave of Covid, which has increased the demand for vaccines. Now, the labor groups given preference for vaccines in Argentina are health workers, police, and educators. 11 unions representing port workers stopped activity at Rosario for 48 hours, starting on Wednesday the 19th of May. According to reports from the Chamber of Port and Maritime Activities (CAPyM), the strike caused a breakdown of logistics, resulting in congestion at anchorages and making it difficult for ships to load.

*San Lorenzo Terminal, Port of Rosario, Argentina. (Source: Splash 247)*

The country is in the midst of soy and corn harvest seasons as Argentine producers bring in their 2020/21 crops. Argentine growers are currently harvesting soybeans and corn, the nation’s two main cash crops. Argentina is the third-largest corn exporter and the largest soy meal exporter globally. Soymeal is a livestock feed utilized to fatten hogs and poultry from Europe to Southeast Asia. The farm sector is of vital importance to the country, and grains are the nation’s top source of export revenue.

The congestion was worsened as seven ships loaded with grains were unable to evacuate the Port due to the low water level of the Parana River. Water levels of the river have been dropping because of the dry weather occurring in Brazil, where the river begins. This shallowness shaves tonnage off permissible cargos, and meteorologists expect the waterway’s navigability to remain a problem in the short term. Some port managers worked during the strike to offload part of the ships’ cargo to allow them to sail. The Ministry of Transportation, the Coast Guard, and the river pilots then decided to tow the vessels out, beginning on the 22nd of May. Once the ships reach the main channel of the Parana River, they will be capable of sailing south past Buenos Aires to the Atlantic. Paraguay and Brazil have also consented to release water from the Itaipu dam to aid barge traffic that the shallowness of the Parana had delayed.

Strikes set to continue

Unfortunately, the strikes continue as Argentine port workers plan to hold another 48-hour strike starting on Wednesday, the 26th of May, 2021. This may further hamper the country’s agricultural exports, following the logistical issues caused by the previous strike over demands concerning the COVID-19 vaccines. The unions have justified the strike given the exponential rise in COVID-19 cases, the loss of several port workers, and the failure of all negotiations that have been held with national authorities.