Port of Santos reduces coffee shipments and loses cargo

Despite maintaining its status as Brazil’s leading coffee exporter, the Port of Santos shows clear signs of exhaustion and calls for infrastructure investments. This is the warning from the Coffee Exporters Council of Brazil (Cecafé), which presented its monthly statistical report on the product on Wednesday (10th).

“Santos has always stood out in this leadership position, but in 2023, and even in recent months of this year, its percentage has been increasingly declining”, said Cecafé's director, Eduardo Heron.

In the 2023/24 coffee year (which ended last month), 32.607 millions bags were shipped through the Santos port complex, representing 68.9% of the total volume traded. This is the lowest percentage of representation for the Port of Santos in history, which has previously reached up to 85%.

“What is most curious is that Santos is not losing cargo to ports with better infrastructure. It is because the Port is blocked, with extremely high costs, making it impossible to consolidate shipments. And to avoid port expenses, exporters are seeking alternatives to reduce financial impacts”, argues Heron.

According to data from the Detention Zero (DTZ) Bulletin, prepared by ElloX Digital in partnership with Cecafé, 254 ships destined for coffee export suffered delays or schedule changes at Brazilian ports in June, representing 62% of the 413 container ships moved last month. In Santos, there were 118 vessels that experienced some form of delay in the loading process — 82% of the total.

“Cargo comes from the interior of Minas Gerais and Espírito Santo, for example, to be shipped from Santos. It arrives at the terminals and is prevented from entering, because the yards are full. As a result, the exporter incurs additional costs, which disrupts the financial flow of any company. The agribusiness sector, which has been growing over the years, cannot be at the mercy of extremely high costs”, details Cecafé's director.

Other cargo and infrastructure

After Santos, Rio de Janeiro appears, increasing its share to 28.1% (combining the capital and Itaguaí-Sepetiba), reflecting the absorption of cargo from Santos, with 13.269 millions bags shipped abroad in the 2023/24 season. The Port of Paranaguá, in Paraná, also makes the list with 465,770 bags and a 1% share.

“While Santos shrank by 10%, Rio grew by 10%. The alternatives are already evident, but Rio also faces challenges. It is standing out, but imagine this combined with other cargo. We will have a collapse at other ports. The infrastructure problem is not only in Santos; it is present at Brazilian ports in general”, projects Heron.

The director notes that the logistical challenge for the second half of the year — when there is an increase in container shipments — is not only related to coffee export, but also to other products like sugar and cotton.

“We need sensitivity from the authorities to urgently invest in ongoing active projects, especially in Santos, such as STS10 (a terminal at Valongo whose design is not yet defined). If this situation continues, I can guarantee that we will face severe issues, and none of those vessels over 14,000 TEU will arrive at the Port of Santos as required”, asserts Heron.

Coffee export grows 32% and reaches record volume

Brazilian coffee exports reached a historic record volume of 47.300 millions 60 kg bags in the 2023/24 coffee year, representing a 32.7% increase compared to the 35.632 millions bags recorded from July 2022 to June 2023.

The current volume, shipped to 120 countries, also represents a 3.6% increase over the previous record of 45.675 millions bags in the 2020/21 cycle. The data are also part of the monthly statistical report from the Coffee Exporters Council of Brazil (Cecafé).

“On the positive side, Brazil, with a better harvest after two cycles of smaller crops, has increased its market share in global trade, filling the gaps left by reduced supply from other producers like Indonesia and Vietnam”, says Cecafé's president, Márcio Ferreira.

The exhaustion at the Port of Santos was also noted by the president of the entity. “On the other hand, we continue to face intense logistical bottlenecks, with external problems due to ongoing geopolitical conflicts and, internally, the exhaustion of Brazil’s main port, Santos, which has led to high additional and unforeseen costs for operators who are still working to meet commitments with international clients and maintain Brazil’s position as a global leader”, he analyzes.