Carriers Introduce Low Water Surcharges Amid ...
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As a severe dry cycle approaches, major container carriers have rolled out pre-emptive fees for cargo moving throught the Port of Manaus
Expected Severe Draft Restrictions
Citing navigational warnings issued by the Western Amazon River Port Captaincy (CFAOC) in Manaus, container lines highlight severe draft restrictions that will take effect from week 40 (late September) through at least the end of the year. These restrictions significantly limit vessels’ payloads. They also force operators to absorb extra logistical overheads, including routing adjustments, lighter loading capacities, and the potential deployment of temporary floating piers off the Port of Itacoatiara downstream.
Low Water Surcharge
Major international liners serving the region, such as CMA CGM, Maersk, and MSC, have already pegged their additional levies. The Low Water Surcharge (LWS) currently ranges from USD 753 to USD 1,900 per container, depending on the operator, equipment type (dry or reefer), and specific service loops.
Anticipated challenges and Regulatory Disputes
The wave of LWS announcements has reignited long-standing tensions between regional industrialists and shipowners. The Amazon Commercial Association (ACA) has appealed to the National Waterway Transport Agency (ANTAQ), seeking immediate administrative suspensions of the additional fees. Local trade bodies argue that carriers have prematurely imposed the surcharge before water levels have officially breached the critical regulatory thresholds that trigger emergency tariffs.
Recommendations for Shipowners and Operators
Shipowners, operators, and masters intending to fix vessels or transit the Amazon basin from September onwards should factor in draft limit reductions and under keel clearance (UKC) constraints when planning voyages. This is critical to mitigate the risk of grounding, which is drastically heightened during the dry season.
The following precautionary measures are strongly recommended:
- Maintain close liaison: Routinely check prevailing local draft limits, bathymetric updates, and regulatory notices with port agents, pilots, and terminal operators prior to entering the river system. Keep a continuous watch on VHF channel 16.
- Review clearance requirements: Strictly adhere to the latest UKC parameters issued by the CFAOC.
- Monitor crew comfort: Ensure shipboard heating, ventilation and air conditioning (HVAC) systems are fully operational and regularly maintained to comply with local maritime labour requirements regarding extreme thermal discomfort during the peak dry season.
- Update charts and test navigation equipment: Ensure all electronic and paper nautical charts are up to date. Critically test all essential navigation equipment –including two independent operational radars and two working anchors– before entering or leaving Amazon ports.
- Heighten ship security: The Amazon region remains highly susceptible to armed robbery, with boarding incidents historically spiking during the dry season due to slower vessel transits and night-navigation bans. Ships and barge convoy crews carrying fuel products or high-value electronics are particularly vulnerable. Crews must maintain vigilant lookout for small craft (such as barges, riverboats, mining rafts, and canoes) that are difficult to detect on standard shipborne radar equipment.
- Conduct rigorous contractual reviews: Given the severe draft constraints, shipowners and operators must thoroughly review charterparties, bills of lading, and logistics service agreements. Particular attention must be paid to clauses covering partial loading (deadfreight), transhipment, forced deviation, waiting time, demurrage, force majeure, and the strict allocation of drought-related operational costs.
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