CommoditiesMedium•9 November 2026•
1 min read
Amazon Drought Cuts Brazil's Northern Arc Grain Shipping Capacity to 60%
Key Facts
1El Niño-driven high temperatures and drought have reduced cargo capacity on the Tapajós River to 60%.
2Transportation on the Madeira River fell to 70% of capacity in mid-October due to low water levels.
3Lower demand for trucks carrying grain to waterways has pushed down road freight rates.
El Niño-driven high temperatures and drought have reduced cargo capacity on the Tapajós River to 60%. Valor International reported that transportation on the Madeira River also fell to 70% of its usual capacity in mid-October due to low water levels, restricting grain logistics through Brazil's Northern Arc ports.
The lower demand for trucks carrying grain to these waterways has pushed down road freight rates as river logistics face disruptions. Companies including Caramuru Alimentos have been forced to reduce barge loads due to vessel draft restrictions in the Amazon region, occurring alongside a Brazilian trade balance surplus of $9.32 billion reported on November 6, 2026.