Due to labor conflict, several vessels canceled their calls at the Port of Montevideo

The strike at the Port of Montevideo has had a strong impact on Uruguay’s logistics operations, with canceled shipments and rising costs already directly affecting beef exports. “We’ve had to cancel two vessels and are waiting to decide whether to cancel a third,” said Pablo Domínguez, general manager of ONE (Ocean Network Express) in Uruguay, speaking from the Anuga fair in Germany.

Domínguez warned that the situation is “serious,” as it affects both exports and imports. “Refrigerated cargo remains plugged in, consuming energy; I have cold storage, floor, and warehousing costs. Meanwhile, imports arriving by ship can’t be unloaded, are diverted to other ports, and must then be transported back. It’s a serious problem for the country’s entire foreign trade,” he emphasized.

The port uncertainty contrasts with a scenario of solid demand and stable logistics costs. “In terms of volumes, the year is positive. Europe is showing a rebound, Hilton quotas are filled very quickly, and China remains a dynamic, though more volatile, market,” he noted. In this context, he highlighted that freight rates have normalized after the pandemic’s logistics collapse: “Today they are at reasonable levels, and markets are accessible and competitive.”

The executive of the Japanese company in Uruguay also stressed the need to deepen the Montevideo port channel. “We are asking the government for greater draft depth. It’s strategic if we want to continue receiving larger vessels,” he said.

In this regard, ONE will reaffirm its commitment to Uruguay with the arrival of a new large-capacity vessel, recently built at Imabari Shipyard in Japan. “On November 10, a 14,000-TEU ship, 336 meters long and 51 meters wide, will arrive. It will be the longest vessel ever to enter the Port of Montevideo and the one with the highest refrigerated capacity in the region, with 1,500 reefer plugs,” Domínguez announced.

The vessel also features cutting-edge environmental technology. “It’s a dual-fuel ship, designed to operate on methanol in the future, equipped with sulfur filters and very low emissions. For Uruguay, this is particularly relevant given the green methanol projects currently under development in the country,” he explained.

While the port conflict continues to cause losses and delays, the arrival of ONE’s new vessel represents a firm commitment to the continuity and growth of Uruguay’s logistics sector. “Latin America is becoming one of the most stable regions in the world. Hopefully, Uruguay can make the most of it,” Domínguez concluded.