Low river levels in Brazil reduce grain barge loads while road freight rates decline

Falling river levels in the Amazon basin due to drought and high temperatures associated with El Niño are complicating agricultural commodity transportation through Brazil’s Northern Arc export corridor. The most difficult conditions are on the Tapajós River, where low water levels have reduced barge loads to just 60% of capacity. On the Madeira River, the figure dropped to 70% in mid-October before recovering to 100%. Meanwhile, weaker demand for trucking grain to river terminals has led to lower road freight rates.

According to Brazil’s Agency for Sustainable Development of Waterways and Export Corridors (Adecon), the current drought is less severe than in 2023–2024, although river levels are lower than last year. The Tapajós River has been the hardest hit, serving as a key transportation route for agricultural commodities moving from Brazil’s inland producing regions to export terminals in the Amazon basin. Although water levels have stopped falling, vessel draft restrictions continue to limit cargo volumes.

Lower river levels are forcing agricultural exporters to adjust their logistics and deploy more barges to fulfil contracts. Caramuru Alimentos, which exports concentrated soy protein through the Itaituba terminal, has reduced individual barge loads and started operating larger barge convoys. The product is transported along the Tapajós and Amazon rivers to the port of Santana before being shipped to Germany. The company says operations have not been suspended and contracted volumes continue to be delivered.

Despite restrictions on river navigation, road freight rates along Brazil’s northern grain routes are declining. In October, transportation costs on the Sinop–Miritituba route stood at R$255.87/ton, compared with R$260.16/ton in September and R$307.63/ton in June. The decline reflects a seasonal reduction in export cargo flows and weaker demand for grain deliveries to river ports, partly due to navigation restrictions. However, freight rates remain higher than in October 2025, when they averaged R$237.51/ton, mainly because of rising costs, particularly more expensive diesel fuel.

The navigation difficulties come amid the rapidly growing importance of the Northern Arc corridor for Brazil’s agricultural exports. Between January and September 2026, shipments through the corridor reached 10.06 mln tons of corn and approximately 38.7 mln tons of soybeans, accounting for 51.2% and 38.7% of the country’s respective exports. Analysts consider November a key month for assessing the further impact of El Niño on river logistics. Persistently low water levels could reduce transportation efficiency and increase exporters’ costs despite the expansion of northern port capacity.

Tags: river shipping, freight transportation, low water levels, grain, grain export, Brazil