DataLiner: newest data reveal strong rebound in July container exports

Data recently disclosed by Datamar’s Business Intelligence division reveals that Brazilian exports in containers grew by 7.3% in July compared to the same month in 2022. A total of 24,111 TEUs were shipped abroad in the seventh month of this year, marking the best monthly result in the past five years. However, despite this positive trend, year-to-date container exports (January to July) remain 5.3% lower than the same period last year.

Here’s a historical overview of Brazilian container exports according to DataLiner:

Containerized exports (month-on-month) | Jan 2019 – Jul 2023 | TEU

Source: DataLiner (click here to request a demo)

Year-to-date Container Exports | 2019-2023 | TEU

Source: DataLiner (click here to request a demo)

Meat products, especially poultry, stood out as the most exported cargo via containers in the first seven months of the year, with volumes 4.1% higher than the same period in 2022.

Sugar exports in containers also saw a substantial increase, rising by 87.4%. Conversely, exports of wood dropped by 17.4%, and plastic exports fell by 17.05% over the same period.

Parallelly, China emerged as the leading destination for Brazilian containerized cargo in the first seven months of the year, with 245,722 TEUs, reflecting a 2.5% growth compared to the same period in 2022. Meanwhile, container shipments to the United States declined by 15.7% year-on-year, while Mexico, the third destination for Brazilian containers, received a 7.7% larger volume.

Imports

Brazilian imports in containers showed slight growth in July (+0.80%) compared to the same month in 2022. However, year-to-date imports (January to July) grew by 7.2%. See more below:

Imports in Containers (month-on-month) | Jan 2019 – Jul 2023 | TEU

Source: DataLiner (click here to request a demo)

Year-to-date Imports in Containers | Jan-Jul | TEU

Source: DataLiner (click here to request a demo)

Among the highlights in cargo imports, plastic surged by 24.8% in the first seven months of the year compared to the same period last year. Imports of reactors, boilers, and machinery increased by 18.1%, while imports of electrical appliances and materials grew by 20.5% YoY.

Regarding the origin of imported cargo, China sent 16.7% more goods in containers to Brazil than it did a year ago, and the United States dispatched a 16.1% larger volume.

Plate Insights

Looking at the other countries on the East Coast of South America, Argentina recorded a 13.42% decrease in exports in July compared to July 2022. Year-to-date, there was an 8.8% decline compared to the January-to-July period in 2022.

In contrast, Argentina took in a 6.1% larger volume in July than in July 2022; still, in year-to-date terms, the country saw a 12% decrease compared to the January-to-July period in 2022.

Uruguay’s exports in containers also dropped in July by 11.2% compared to July 2022, with a 10.7% decline in the January-to-July comparison for 2023.

However, Uruguayan imports showed positive performance, increasing by 1.48% in July compared to July 2022 and rising by 3.4% year-to-date compared to the January-to-July period in 2022.

Low Freight Rates and Positive Prospects

According to the latest Platts report by S&P Global on August 25, the freight rate for the PCR31 route – from Asia to the East Coast of South America – was assessed at $2,000/FEU, a drop of over 18% from the previous week. Despite this, prospects indicate economic growth with the approaching holiday season (traditionally witnessing increased imports in August, September, and October in preparation for year-end shopping).

Additionally, data released by the Brazilian Institute of Geography and Statistics (IBGE) on September 1 revealed that Brazil’s economy grew by 0.9% in the second quarter of this year compared to the first three months. The Gross Domestic Product (GDP) totaled R$2.651 trillion.

In comparison to the same quarter last year, the Brazilian economy advanced by 3.4%. The GDP has seen a 3.2% increase over the past 12 months, with a 3.7% accumulated growth in the first half of the year.

The 0.9% growth in the second quarter of 2023, compared to the immediate previous quarter, marks the eighth consecutive increase in this type of comparison. However, it also indicates a slowdown, as the first quarter of the year saw a 1.8% growth (revised by IBGE) compared to the last quarter of 2022.

The data positions Brazil’s economy 7.4% above the pre-pandemic level and marks a historic high point for the country.

This article included information by Agência Brasil

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