DataLiner report: April data confirms downward trend in export transport; imports retain momentum
Jun, 01, 2023 Posted by Gabriel MalheirosWeek 202322
Data recently released by Datamar’s Business Intelligence team reveals a decline in Brazilian exports via containers in April 2023, with a 4.5% decrease compared to April 2022. The year-to-date result shows an even greater drop of 10.2%.
Let’s take a closer look at the data on Brazilian exports via containers gathered with the aid of the DataLiner maritime intelligence service:
Brazilian containerized exports | Jan 2019 – Apr 2023 | TEU
Source: DataLiner (click here to request a demo)
According to DataLiner, the most exported commodities by Brazil in the first four months of 2023 were meat, which experienced a 2.6% increase in volume compared to the same period in 2022. However, wood (-19.5%), coffee (-14.6%), paper (-21.2%), and pulp(-11.1%), the following most exported items by Brazil via containers, witnessed decreases in shipped volumes.
On the other hand, the import data offers a more positive outlook. The cumulative result for the year shows that Brazil imported a volume 4.1% higher via containers than in the first four months of 2022. In April alone, there was a notable growth of 12.8% compared to April last year. It’s important to note that freight rates were much higher during the same period last year, and the appreciation of the dollar compared to last April hindered imports.
The most imported commodity by Brazil via containers in the first four months of 2023 was plastic, with a volume of 103,721 TEUs, marking a 25.7% increase compared to the same period in 2022.
Now, please find below Brazil’s imports via containers, according to data collected through DataLiner.
Brazilian containerized imports | Jan 2019 – Apr 2023 | TEU
Source: DataLiner (click here to request a demo)
Plate
Turning our attention to Argentina, exports via containers experienced a 6.1% decline in the first four months of 2023. Looking specifically at April, the drop reached 15.2% compared to April 2022.
Regarding imports from January to April, there was a considerable drop of 20.4%. However, when comparing April 2023 to April 2022, the decrease was slightly smaller at 10.8%.
In the case of Uruguay, exports fell by 8.2% in the first four months of 2023 compared to the same period in 2022. However, when focusing solely on April, the decline was smaller, reaching 6.2% compared to April 2022.
Uruguayan imports, on the other hand, displayed signs of recovery. Although year-to-date volumes still show a 2.7% decrease, April witnessed a substantial growth of 27%.
Freight
Despite the recent decline in freight rates during April and May, what can we anticipate for the upcoming months? According to the latest bulletin released by S&P Global’s Platts last week, imports from the East Coast of South America and North Asia were the only Platts-rated container rates to experience gains. The rates increased by $200, reaching $2,300/FEU, which is the highest level since November. Sources indicate that the rates are increasing despite the decrease in demand as shipowners are adjusting their services.
“Prices are rising despite declining demand,” says a source. “Volume is decreasing, but prices are not.”
Prospects
According to data released on Thursday, June 1, by the Brazilian Institute of Geography and Statistics (IBGE), the Brazilian economy experienced a hike in the first quarter of 2023 compared to the previous quarter.
Brazil’s Gross Domestic Product (GDP) grew by 1.9% in the first quarter of 2023 in comparison to the last quarter of 2022.
The primary driving force behind this result was the growth in agriculture and livestock activities, which increased by 21.6% during the period. This marks the best performance in 26 years, since the fourth quarter of 1996. Soy, the country’s main crop, is expected to experience a significant annual output increase of 24.7%.
Even though weaker figures are expected for the remainder of the year, the market has revised its GDP projections upwards. According to the latest survey by the Central Bank, the estimate for the growth of the Brazilian economy in 2023 has risen from 1.20% to 1.26%. The government is working with an estimated growth rate of 1.9%.
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