What is expected from Antaq

SÃO PAULO – After nearly three months of skirmishes between Russia and Ukraine, with no prospects of a peace dialogue opening up, what the world is witnessing could potentially lead to the Third World War, with serious social, political, and economic consequences. One of them is already being felt in the port sector, due to disruptions in industries worldwide and logistical issues also brought about by the developments of the coronavirus pandemic (COVID-19), which, after two and a half years, is only now beginning to show signs of regression.

One of the consequences of this global situation is the impact already observed in Brazilian ports, even though the country seems neutral in the face of that conflict and is responsible for only 1% of container movement in the international market. It is because, faced with problems caused by the war in Eastern Europe, many shipowners are not adhering to the previously defined schedule, and many vessels are choosing to dock at another port to meet a likely more economically attractive delivery deadline, without communicating the change in advance, which ends up causing a lot of losses to port users.

With constant delays in shipments and unloading, many full containers end up staying at the port beyond the expected time, causing losses such as storage expenses and disruptions in distribution logistics planning. In this way, many importers are punished with delays in product delivery, higher freight prices, and charges for cargo storage time, which ends up disrupting factory production due to the lack of inputs or the distribution of imported products.

Brazilian producers of inputs destined for the international market have also been affected by untimely changes in routes, especially those linked to agribusiness, such as producers of wood, coffee, cotton, frozen meats, the chemical industry, and the mining industry. On the other hand, port terminals also suffer from reduced productivity in their crowded yards.

The National Waterway Transportation Agency (Antaq) has already identified the problem and intends to hold shipowners responsible for these delays, which have caused a shortage of containers in national ports. According to Antaq, shipowners have favored ports with verticalized terminals, i.e., those in which they have a shareholding interest, to the detriment of those considered “open access” ports.

However, it is not clear to what extent Antaq can take action against international shipowners, especially because the preference of shipowners for stopping at some ports rather than others is related to the operating capacity of each one. Not to mention the preference for the port that offers more cargo.

Obviously, the losses end up falling more heavily on companies responsible for perishable goods, which have delivery deadlines that cannot be extended, under the risk of total loss. In addition, there is an increase in costs for exporters with container rentals and port storage, terminal congestion, delays in the delivery of already sold goods, and unpredictability in the actual delivery of cargo.

Internally, Antaq can at least reach an agreement with the terminals not to charge users in cases of missed schedules, in addition to monitoring the situation and proposing regulatory measures against the effects of container shortages. After all, Antaq is obligated to create regulations and oversee service provision in ports, as well as regulate the waterway cargo and passenger transportation service throughout the country. All of this is of paramount importance not only for those dependent on imported goods but also for national producers who need to honor their commitments to customers worldwide.

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Liana Lourenço Martinelli, lawyer, postgraduate in Business Management and International Trade, is the manager of Environmental, Social, and Corporate Governance (ESG) at the Fiorde Group, composed of Fiorde International Logistics, FTA Transport and Warehouses, and Barter International Trade. Email: lianalourenco@fiorde.com.br. Website: fiorde.com.br.

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