Argentina's decision to suspend transshipment operations at Km 171 of the Parana Guazu River has drawn criticism from regional stakeholders, especially in Paraguay.
Argentina's custom agency ARCA cited a lack of formal port authorization as its justification to suspend operations there, but industry groups, government officials and logistics experts are skeptical of the explanation. ARCA announced the measure on 26 May and it is set to take effect 30 days later.
Km 171 is a key logistics point in the Parana-Paraguay waterway and has long served as a hub for ship-to-barge transfers of oil products such as diesel and naphtha, especially for Paraguay.
Argus assesses both products Fob Km 171.
Paraguay's river and maritime shipowners center CAFYM opposed the decision, saying it is arbitrary and lacks technical justification. It violates long-standing bi-national practices and undermines regional cooperation, CAFYM said.
"Paraguay cannot be held hostage to unilateral decisions that affect public interest," the organization said. The measure could disrupt fuel supply chains, increase logistics costs and lead to higher prices for consumers, according to CAFYM.
Argentina's port and naval industry federation Fempinra, on the other hand, welcomed the suspension. It is a step toward reinforcing national sovereignty and supporting the domestic merchant fleet, secretary general Juan Carlos Schmid said.
Market participants are pondering whether the suspension may have resulted from a technical misinterpretation by customs officials or a deliberate policy shift.
(Im)possible alternatives
Participants have rejected the possibility to redirect operations to other terminals in nearby towns, such as Campana or Zarate, or also such Nueva Palmira in Uruguay, due to infrastructure limitations and licensing constraints.
Fuel importers and distributors in Paraguay are mobilizing against the decision. They are concerned about the cascading effects on fuel availability and prices for the general population, they said. Meetings among stakeholders are underway to discuss the matter.
Monocratic decision
The suspension threatens the continuity of fuel supply and regional trade stability because it was imposed without consultation or technical review, CAFYM said.
The zone has operated for over 30 years under the supervision of Argentina's naval prefecture and with customs oversight, CAFYM said.
With no resolution yet in sight, the coming weeks will be critical. The outcome of this dispute may shape the future of cooperation along one of southern America's most important waterways, whether it is resolved through diplomatic negotiation, a legal challenge or a policy reversal.
