This area is starting to charge a "drought fee"? Dozens of factories will be shut down and logistics will be blocked! 17000 workers are going on vacation!
Oct 26,2023

Recently, the Amazon region of Brazil has suffered a severe drought, the water level of many rivers has hit a record low, logistics has been blocked, and the lives of residents in cities and towns along the river have been greatly affected.
Due to the low water level, the Brazilian"Mother River"-some tributaries of the Amazon River have been cut off,The freight capacity of some major tributaries has also declined significantly.

Water level drops, freight falls
the amazon river, located in the north of south america, is the second-largest river in the world,However, it is the river with the largest flow and the most tributaries in the world.
The water level of the Amazon River varies significantly seasonally from year to year.May to October is the dry season in the general sense.
Affected by the El Nino phenomenon, this year's dry season precipitation in the Amazon River Basin decreased significantly.Take the city of Bellen, for example, this yearSeptember precipitation is only 1/4 of the normal year.
The water level of the main tributaries of the Amazon River, such as the Madera River and the Taparos River, has been at the lowest level in history.

In addition, accordinga recent report said that due to the drop in river water levels,Now on the Amazon RiverNinety per cent of large cargo vessels are unable to sail at full capacity and the loss of capacity is around 50 per cent.
Due to restrictions on large ships, some of the most urgent supplies can now only be delivered by loading them on small ships,Logistics speed is also affected, the pastVoyages of 3 to 4 days now take about 10 days.
About two weeks ago, many shipping companies began charging"Drought Fee", with a minimum of R$ 3000 per container (about 4330 yuan),And now that cost has risen to about10000 real (about 14400 yuan).
According to industry observations, the recent increase in freight rates for shipping in the Amazon region is generally25% to 50%.The increase in freight prices has also passed on to the consumer market, with many residents saying that they have recently felt a significant price increase.
Poor logistics, factory shutdown
As the drought in western and northern Brazil has recently intensified, the water level of the Amazon River in Manaus, the capital of the Brazilian state of Amazonas, has fallen sharply,Local waterway traffic has been severely affected.
Largest Free Trade Zone in Brazil-Many enterprises in the Manaus Free Trade Zone have been hit by production and logistics.

The Manaus Free Trade Zone concentrates most of the Brazilian manufacturers of electrical and electronic products. Affected by the decline in the water level of the Amazon River,The logistics and transportation of some enterprises in the Manaus Free Trade Zone have been seriously disrupted.
It is understood that the original one month can transport aboutThe port of 30000 containers actually transported about 1000 this month.Obstructions in the transportation of goods have also affected the revenue of the free trade zone.
In this regard, many factories said they would adjust production capacity.Relevant sources recently revealed that the localAt least 35 of more than 100 large factories, a total of 17000 workers will take collective leave from the end of this month.
President of a workers' union in the Brazilian Amazon Valdemir• Santana: Several companies are sending out leave notices.Time off from5 days to 15 days. We agree on the condition that the employee shall not be dismissed.
However, even if some factories can maintain production,But a large number of goods leaving the factory are also facing"Can't get out" of the logistics problem.
Drought has less impact on food
Brazil is one of the world's major food producers and exporters, especially soybeans and corn.These two kinds of food products have an important position in the international market.

The drought in the Amazon has also raised concerns about international food supplies,It is believed that it may lead to an increase in food prices and even a food crisis.
However, this concern seems excessive.
According to the Brazilian National Association of Grain Exporters and market analysts,The drought in the Amazon region had little effect on soybean and maize exports.
Because most of Brazil's food is exported through southern ports, which are not affected by the drought.
According to statistics, the southern port of soybean and corn exports accounted for Brazil's total exports.more than 80%,And the amount of soybeans and corn shipped to the northern ports via the Amazon River is less10%。
As a result, the impact of the Amazon drought on international food markets is negligible.
Government and social responses
In the face of drought, the Brazilian government and all sectors of society are taking some measures to alleviate the impact of drought.

The government has announced a series of emergency measures, including providing financial assistance, adjusting the price of water and electricity, and increasing the storage capacity of reservoirs.At the same time, the government also called on the public to save water and reduce pollution.
All sectors of society are also actively participating, providing material, technical and human support to help residents and enterprises in the disaster-stricken areas tide over the difficulties.
In general, the severe drought in the Brazilian Amazon has had a serious impact on logistics and the lives of the population.
By strengthening water resources management, adopting water conservation measures and mitigating climate change and other comprehensive measures, it is hoped that the drought problem can be alleviated in the future and the sustainable development of this region can be guaranteed.
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