Datamar: May data reveal new drop in container exports and surge in imports

Recent data released by Datamar’s Business Intelligence team indicates that, in May, Brazilian container exports went through a 6.7% year-on-year decline. The volume handled, 219,887 TEUs, is below the export volumes seen in May over the past four years.

In year-to-date terms, considering the first five months of 2023, the volume of containerized exports is 9.4% lower compared to the period from January to May 2022.

See below a chart displaying Brazilian container exports designed using DataLiner data.

Comparison of Brazilian exports | 2019 – 2023 | TEUs

Source: DataLiner (click here to request a demo)

Among Brazil’s top export goods, meat stands out with a 3.6% growth in volume compared to the previous year’s period. Sugar shipments have increased by 59.9%. However, cotton exports have experienced a 57% decrease in the same comparison.

Imports

Imports, on the other hand, performed better in May compared to the same month in 2022. In the fifth month of the year, Brazil received 208,258 TEUs from abroad, representing a 14% increase from May 2022.

In the first five months of the year, imports of containerized goods have grown by 14% compared to the same period in 2022. Notably, imports from China have increased by 11.4% in the first five months of the year, while imports from the United States have grown by 20%.

See below the Brazilian imports of containers in the first five months of the year since 2019. The data was collected by Datamar’s Business Intelligence team:

Comparison of Brazilian imports | 2019 – 2023 | TEUs

Source: DataLiner (click here to request a demo)

Plate region

Turning to Argentina, container exports from the country have fallen by 8.2% in the first five months of 2023 compared to January-May 2022. Comparison month by month, shipments experienced a 15% decline in May. Imports have dropped by 16.2% year-to-date and 1.7% for the month.

In Uruguay, exports have declined by 8.8% from January to May 2023 compared to the same period in 2022. In May, the small Spanish-speaking country saw a 10% drop in its exports. However, imports have grown by 2.5% in the year and an impressive 28% from April past.

Freight rates

Considering this lukewarm market scenario, how are maritime freight rates looking? According to the latest report from Platts, rates in Latin America have remained stable over the past week, both as exports and imports. While demand for Asian cargo has increased on both sides, carriers have managed to adjust capacity accordingly, keeping rates flat for the week.

Looking ahead

The Icomex (Foreign Trade Index) report released by FGV (Fundação Getulio Vargas) on June 21 forecasts a 5.4% growth in Brazilian exports for 2023. However, global trade in goods is projected to grow at a slower pace this year, with the WTO (World Trade Organization) estimating a rise of only 1.7% compared to the 2.7% increase seen in 2022. For South America, the projection indicates a growth decrease from 1.9% to 0.3% in the same period.

“Brazil, as the largest economy in the region and the largest exporter, plays an important role in determining the volume growth of exports in South America,” highlights the Icomex report, noting Brazil’s position as the only South American country among the top 30 world exporters in 2022, ranking 26th with a 1.3% share of world exports.

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