Excel Maritime Carriers (EXM) Ltd are losing profits due to congestion in Brazil’s ports. Delays in loading corn and soybeans at Parangagua and Santos, two of the countries largest ports for agricultural exports, are costing Excel Maritime money every day the shipments are delayed. Vessels are believed to have been waiting for up to 51 days at the ports to be loaded.
Rates rose 66% to $8,991 a day this year because of the huge delays, although that it still less than the $17,400 that Excel says it needs to break even.
Peter Norfolk, a London-based analyst at Freight Investor Services Ltd said;
‘Congestion soaks up available tonnage and is effectively bullish for rates. The problems with congestion will persist for some time, so while we’re still wrestling with oversupply, there’s potential for the market to tighten again.’