Fire at Paranagua hampers Brazil’s export logistics further

Shipping authorities assess the damages of last Saturday’s fire, as soybean and corn shipments may be affected

A fire at the Brazilian port of Paranagua late Saturday reportedly affected the shipping schedule for several vessels, including some carrying soybeans and soy meal, sources have told Fastmarkets Agriculture.

“This is all that Paranagua port did not need at the moment, on top of all the delays, rains, etc.,” Daniele Siqueira, grains and oilseeds market analyst at local consultancy Agrural told us.

In a note to clients, shipping agency Williams Brazil said the fire started in the night between Saturday and Sunday at the Terminal CAP, jointly operated by Bunge, and destroyed approximately 400 meters of conveyor belts.

“The incident has caused significant disruptions to operations at the terminal,” Williams said.

The agency added that “while Bunge’s conveyor belts remained undamaged, the junction connecting the two companies for loading at the ship loader was affected, leading to the temporary inoperability of Bunge.”

On its website, Cavalca Port Administration (CAP), which operates the Terminal CAP, published a statement confirming that a fire in its conveyor belts started at around 10 pm on Saturday.

“Our administration reiterates that the terminal was not in operation and the fire was controlled by the municipal fire department team”, said CAP, in the statement.

View our soybean prices

Assessing causes and damages

The operator added that the cause of the fire has not yet been identified and is being investigated by the authorities.

When asked for a comment by Fastmarkets, CAP Port Administration added that it concluded the aftermath of the fire yesterday and will now conduct its assessment of the damages.

The company did not offer a projection of when the terminal will restart operating.

Bunge has not yet responded to another request for additional information from Fastmarkets.

According to some sources, the fire has affected the shipping schedule of several vessels, including some carrying soybeans and soy meal; although this information is not confirmed.

In a statement, Portos do Paraná, the public company that administers the ports of Paranaguá and Antonina, said that berth 201, used in Terminal CAP operations, was made available for “alternative operations”.

By “Alternative operations” Portos do Paraná means direct unloading movements, or without the use of belts and ship loaders to move solid bulk.

The berth 201 remained closed Sunday due to security measures.

The other berths in the port continue to operate normally, according to the company.

“Isolations in areas close to the site of the incident will be maintained, due to the damaged structures – which are being analyzed by the companies”, said Portos do Paraná.

The port of Paranagua, one of the Brazil’s key routes for exporting soybeans, corn and soy products to global markets, has been facing severe headwinds for several months.

The fire came as excessive rains had already been adding to large shipping delays resulting from the combination of soybean and corn volumes competing for port capacity.

What to read next
Investors in the US corn and soybean markets trimmed shorts while amassing longs in the week to Tuesday January 14, pushing the corn net long to the highest-level since May 2022 and moving soybeans from a net short to a net long for the first time in more than a year, data from the Commodity Futures Trading Commission (CFTC) showed late on Friday January 17.
Fastmarkets will not publish any price assessments for US animal fats and oils; animal proteins; biomass-based diesel; hide and leather; grain and feed ingredients; organic/non-GMO; and vegetable oils on Monday January 20 due to the Martin Luther King Jr. holiday in the US and the consequent closure for the day of the Chicago Mercantile Exchange.
Fastmarkets launched AG-WHE-0058 Wheat 10.5% fob US Gulf SRW wheat $/mt on January 6, 2025.
In December, increased demand from various industries led to a 5-10% rise in EU animal fats prices, supported by high seasonal rendering activity and regulatory factors affecting vegetable oil supply.
Gasoline and diesel prices in the UK are set to begin 2025 significantly lower than a year earlier, but uncertainty and potential volatility lie ahead due to a combination of an upcoming administration change in the US and other global events and policies, experts told Fastmarkets.
Africa's increasing air travel demand and biofuel production potential, alongside the Middle East's strategic SAF investments, position both regions as key players in advancing global aviation decarbonization efforts.