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Don't Cry for Me Argentina- Yet Again

05/24/2021

According to a Reuters report on May 19th labor unrest continues at the Port of Rosario. Shipments of grain and soybean meal were at a standstill due to a strike by diverse unions involved in inspection of grain and piloting, docking and loading of vessels. Issues of concern include control of COVID and wages and benefits in an economy marked by inflation.  This series of strikes comes at a difficult time as Argentine farmers finish harvesting.  The Port of Rosario ships approximately 80 percent of agricultural commodities produced by Argentina with the current soy crop at 45 million metric tons and corn estimated to attain 50 million metric tons.

 

Shippers face an added problem relating to the rapidly declining levels of water along the Parana River.  Panamax ships must be loaded to within 11,000 tons of capacity to have sufficient draught in the falling river.  The strike has delayed some vessels to the point that unloading may be required to enable transit from the port to the Atlantic.