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October Update
Brazil’s Petrobras sees fuel demand that could affect future logistics prices
Brazilian state-run oil company Petrobras said October 18th, it has received “atypical demand” for fuel supplies in November that surpasses its production capacity.
The company has been operating its refineries with a capacity factor of 90% in October, up from 79% during the first half of 2021. It commented that diesel demand from fuel distributors is up 20% from November 2019, a period prior to the COVID-19 pandemic.
While Petrobras said that it is still fulfilling its contracts with fuel distributors, logistics professionals should be aware that if demand outstrips supply the price of fuel will increase logistics costs.
At a macro level, there are fuel shortages in other parts of the world, and some respected media are warning of an energy crunch hitting global recovery as winter approaches.
This means that as we head into the busy November and December fourth quarter, it’s important to be working with a logistics provider that can forecast your needs and plan accordingly.
September Update
Global shipping disruptions and the drought that has hit rivers in the heart of South America threaten to reduce meat exports from two of the world’s leading beef-producing nations, as more Food prices will pressure inflation around the world.
DB Schenker is warning that meat packers in landlocked Paraguay will likely slaughter 20-25% fewer cattle this month due to a lack of shipping containers, transportation costs and erratic transit times. This is expected to last through September and October.
Uruguayan meat packers warned of potential production cuts next month as frozen meat accumulates in warehouses as container ships are avoiding Montevideo port in favor of stopovers. more profitable. Some Uruguayan meat packers are shipping containers overland to ports in southern Brazil or to ports as distant as Valparaíso in Chile.
Container shortages and clogged ports in the United States, Europe and Asia have led shipping companies to cancel calls at ports on the Atlantic coast of South America. Not even the world’s largest red meat exporter, Brazil, is immune: Meat is piling up in ports because there aren’t enough reefer containers on hand. Although on a smaller scale than Brazil, Paraguay and Uruguay are consistently among the world’s top beef exporters in terms of volume.
