Weak trade lowers container freight rates in South America

Brazilian container shipments fell 5.08% year-on-year in October, according to data recently released by Datamar Business Intelligence Group on container movements on the Brazilian coast. In the first ten months of the year, compared to the period from January to October 2021, container throughput decreased by 3.5%, 83,571 TEU less than the previous year.

The chart below, based on data from DataLiner, breaks the record for Brazilian exports via containers, providing a clearer picture of the scenario described above:

input
Brazil’s imports via containers decreased by 4.4% in the first ten months of 2022 compared to the period from January to October 2021. Imports in 2022 were 98,405 TEU less than the previous year.

However, the inventory ended up in surplus in October: volumes were 12.9% higher than the same month in 2021. This is illustrated in the chart below:

Brazil’s low trade with other countries continues to weigh on sea freight. According to S&P Global’s latest Platts Americas Container Freight Bulletin, released Nov. 28, freight rates to South America have continued to decline for four weeks. Sources say tonnage has continued to shift from the congested trans-Pacific route to Latin American and trans-Pacific routes, putting pressure on rates even as demand eases.

Source: datamarnews.com