DataLiner: the data from 2021 point to economic stagnation

Recently released DataLiner data regarding container handling in Brazil indicate that, in 2021, exports remained stable compared to the volumes shipped in the two previous years. Imports, on the other hand, registered an increase.

Exports

In 2021, Brazil exported the equivalent of  2,907,379.45 TEUs, a volume 1.32% higher than 2020 and 7.13% higher than 2019.

Exports did not maintain the same pace throughout 2021. Instead, the year started with exported volumes ranking higher than 2020,  a recovery from the downward trend initiated by the pandemic, and fell at the end of the year, despite the high dollar price, which, in theory, favor shipments.

Check below for a comparison of exports recorded in the last three years. The data is from DataLiner:

Brazilian containerized exports | Jan to Dec 2019-2021 | TEU

Source: DataLiner (click here to request a demo)

However, logistical issues hampered shipments: congestion at ports around the world, high freight rates, and a lack of containers. In addition, the grounding of a ship in the Suez Canal in March and Covid, which closed terminals in Asia, led shipowners to invest in more profitable routes, such as the North America-Asia trade, negatively impacting Brazilian exports.

Imports

As for imports, Brazil received 2,667,836.48 TEUs from other countries, a volume 16.53% higher than in 2020 and 10.88% higher compared to 2019, which indicates constant growth year after year.

See below the growth of imports over the last few years. The data is from DataLiner:

Brazilian containerized imports | Jan to Dec 2019-2021 | TEU

Source: DataLiner (click here to request a demo)

In 2021, China remained the leading supplier of Brazilian imports, shipping 25% more to Brazilian shores. Machinery and manufactured products were the main products sent by China.

Because of the low-interest rates, businesses decided to invest in their facilities, importing more machines and equipment.

Outlook for the year

This year is expected to be one of economic stagnation. The International Monetary Fund (IMF) reduced Brazil’s growth forecast for this year from 1.5% to 0.3%, the lowest out of a group of 26 countries, including the major advanced and emerging economies, whose estimates were disclosed in the World Economic Outlook report update.

According to the agency, the decline seen in Brazilian forecasts occurred in a global slowdown context mainly caused by continuous difficulties in international supply chains and the sharp increase in energy and food prices, which resulted in a significant rise in global inflation.

Brazil’s Central Bank Monetary Policy Committee adopted an intense cycle of high-interest rates in response to the expressive rise seen in the National Wide Consumer Price Index (IPCA in Portuguese), which rose 10.06% last year and impacted the national level activity.

Sharing is caring!