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Coffee exports suffer as Brazilian ports reach breaking point
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Saturday, 17 May, 2025, 15 : 00 PM [IST]
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Brazil
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The deterioration of Brazil's port infrastructure has become a critical obstacle for the agribusiness sector, directly impacting key supply chains of major industries, such as coffee, among other commodities. According to Mario Veraldo, CEO of global logistics company MTM Logix, the issues are no longer isolated incidents—they’ve become systemic. “Brazilian ports are operating at full capacity - outdated equipment, lack of maintenance, and underinvestment have created an unsustainable situation,” he said.
According to Veraldo, Brazil invested only 2.2% of its GDP in infrastructure in 2024, when nearly double that—around 4.3%—would be required to meet projected demand over the next three decades. This shortfall comes at a time when agribusiness exports are booming, reaching $164.4 billion last year—nearly half (48.9%) of the country’s total exports.
In March 2025, Brazil failed to ship 637,767 bags of coffee—equivalent to approximately 1,932 containers—due to logistical bottlenecks. This resulted in a loss of around US$ 1.568 million, according to the Brazilian Coffee Exporters Council (Cecafé). Since June 2024, inefficiencies at major coffee-exporting ports have led to an additional US$ 11.72 million in extra costs. The failure to ship this volume also meant Brazil missed out on US$ 265 million in foreign exchange revenue for March alone.
The Detention Zero Bulletin (DTZ), published by startup ElloX Digital, reported that 55% of vessels—179 out of 325—experienced delays or had their schedules altered at Brazil’s main ports in March 2025. The average container dwell time can exceed 40 hours and, in some cases—particularly at the Port of Santos—reach up to 10 days. Veraldo explains that the current installed capacity of 234 million tons will not meet the projected demand of 238.9 million tons by 2028.
“There is an urgent need to expand and modernise Brazil’s ports, streamline bureaucratic processes, and invest in technology and alternative logistics solutions—such as the Northern Arc ports, which are emerging as strategic routes for exporting Brazilian agricultural products,” said Veraldo.
At the production end of the chain, the consequences are being felt directly by growers. Rodrigo Reis, logistics manager at the Cerrado Coffee Growers Cooperative (Expocacer), says the bottlenecks are impacting everything from operational planning to the income of cooperative members. “These added operational costs could be used to increase the value of the coffee. Instead, we are spending with infrastructure failures,” he said.
Reis explains that Expocacer takes a proactive approach, using early-stage logistics planning and carefully selecting shipping lines. Still, the cooperative faces recurring issues like container shortages, sudden changes to vessel deadlines, and high toll costs on single-lane highways.
“The lack of predictability affects the entire supply chain. When a ship is delayed—or arrives early—we have to reposition containers, pay detention fees, and deal with missed deadlines. It creates a ripple effect of inefficiencies and extra costs,” said Reis.
To mitigate these losses, the cooperative has strengthened its institutional engagement. Expocacer actively participates in Cecafé’s Logistics Committees and monitors guidelines from Brazil’s National Waterway Transport Agency (ANTAQ), aiming for stronger representation with regulatory authorities. Internally, they also have established a department dedicated to audit port charges, which has helped reverse unwarranted fees and reduce the financial burden on producers.
“Brazil urgently needs to rethink its logistics strategy. It’s no use promoting our coffee abroad if we can’t ship it reliably and cost-effectively. We’re still operating with infrastructure that’s stuck in the past, while export volumes grow year after year. The math just doesn’t add up,” concluded Reis.
According to MTM Logix, this situation calls for coordinated action among the government, private sector, and producers. Without it, Brazil risks losing its global competitiveness to a logistics system that can no longer keep up with its potential.
“Digitisation and automation are emerging as strategic tools to transform Brazil’s port logistics, which are currently plagued by inefficiencies and high costs. Smart technologies can speed up processes, reduce operational errors, and improve information management across the entire supply chain. Automated systems streamline everything from cargo clearance to inventory management, cutting wait times and boosting terminal productivity,” said Veraldo.
Additionally, digital integration between carriers, shipping lines, port operators, and regulatory agencies enables smoother communication and more effective decision-making.
“For modernisation to happen at scale, public sector engagement is essential. Policies that expand infrastructure investment, incentivise private participation, reduce regulatory red tape, integrate different modes of transport, and improve workforce training are urgently needed to unlock the system and prepare Brazilian ports for future logistics challenges,” concluded Veraldo.
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