Brazil Picks Up Steam: Exports and Imports Gain Momentum in First Quarter

New data released by Datamar’s Business Intelligence team highlights a significant surge in Brazilian container activity from January to March, with exports marking a notable 22.5% increase compared to the same period in 2023.

China emerges as a primary driver behind this surge, with exports soaring by 48.8% year-on-year in the first quarter of 2024. Notably, exports to the United States and Mexico also saw substantial growth, with increases of 11.9% and 29%, respectively, in comparison.

Meat remains at the forefront among Brazil’s most exported commodities via containers, experiencing a 6.1% growth in shipments compared to the first quarter of 2023. Additionally, wood, the second most exported cargo via containers, witnessed a robust 19.2% increase in shipments. Noteworthy spikes in exports were observed in cotton (+290.9%), coffee, tea, mate, and spices (+48.6%), paper (+54.8%), cellulose pulp (+55.3%), and sugar (+130%).

Imports

Imports into Brazil via containers also saw a notable uptick, recording a 20.4% increase when comparing the first quarters of 2024 and 2023.

China remains the primary source of imported products, with volumes surging by 49.9% compared to the first quarter of 2023. Meanwhile, imports from the United States grew by 16.4% in the same period.

Plastic emerged as the most imported commodity by Brazil in the first quarter of 2024, witnessing a substantial growth of 33.8% compared to the same period in 2023. Notable increases were also seen in the imports of glass (+342.8%) and tires (+52.2%).

The following chart delves into Brazil’s container throughput (exports and imports) in the last four years. This data was derived from DataLiner.

Container Throughput Brazil | Jan 2021 – Mar 2024 | TEUs

Source: DataLiner

Plate

Turning to Argentina, exports via containers saw a modest 4% growth in the first quarter of 2024 compared to the same period in 2022, while imports decreased by 12% in the same comparison. Uruguay experienced a more robust performance, with exports via containers increasing by 4.8% and imports by 14.7% year-to-date (January to March).

The surge in cargo movement, coupled with increased blank sailings, has led to a rise in freight prices, particularly on the China-ECSA route, which soared to $5,000 in recent days.

Looking ahead, the latest “Global Trade Outlook and Statistics” report from the World Trade Organization (WTO) suggests that inflationary pressures are expected to ease in the coming months, potentially leading to an increase in real incomes, especially in advanced technology economies. This could stimulate the consumption of manufactured goods and drive further recovery in demand for tradable goods in 2024, as indicated by indices of new export orders.

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