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‘Drought fee’ threatens Amazon navigation, warns local industry group

Sep, 29, 2023 Posted by Gabriel Malheiros

Week 202339

Exorbitant fee charges are impacting navigation and the export of products in the Amazon region, posing risks of shortages, particularly in the case of fuels and food destined for Manaus. During the dry season, pilotage companies began imposing a “Drought Fee,” with costs reaching up to BRL 800,000, according to the Amazon-based Federation of Industries of the State of Amazonas (Fieam).

Pilotage is a port service typically available for large vessels to ensure safe and unobstructed navigation. In the Amazon, specifically in the Madeira River region, particularly in Itacoatiara, large ports have operations focused on grain, container transport, and fuels destined for Manaus.

Although the state regulates pilotage companies, their fee practices are not monitored. According to Fieam President Antonio Silva, this lack of oversight allows actors in the sector to take advantage of the situation, imposing excessive charges. “Ship navigation is already being impacted by the so-called ‘drought fee,’ which is increasing logistics costs,” he points out.

According to trade expert Mário Pierre Filho, the increase in this fee began in August, during the drought season, a time when the Amazon economy already suffers due to the rivers’ reduced water levels. In previous years, pilotage company fees were around R$ 70,000.

Due to the dry season, ships cannot operate at full capacity in Amazonian ports, especially in Itacoatiara and Manaus. According to Pierre, with the new charges, there is a risk of the Amazon region becoming depleted.

Source: Em Tempo

To read the original news report, visit: https://emtempo.com.br/176615/economia/taxa-da-seca-impacta-navegacao-e-pode-gerar-desabastecimento-no-amazonas-alerta-fieam/

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