South America has increased maritime traffic to Europe

Due to the devaluation of the Real, Brazilian commodities are leading the goods going to Europe.

The South American East Coast containers traffic to the ports in Europe has increased in the last few months in such a way that the goods going northbound are dominating the traffic according to a survey conducted by Drewry Maritime Research.
This situation is mainly attributed to the relentless depreciation of the Brazilian currency which led to a steady market in September 2015 after facing annual drops from 2008 to 2014, according to the British consulting firm.
The big leap happened all of a sudden due to the large increase of exports to the European market in November, from an annual rate of 14% to 14.5% in December and 19.7% in January 2016.


On the other hand the south route, known as the dominant trade route, now sails in still waters with monthly rate dropping - reaching double figures since September. The shipments coming from Europe to South America decreased to a rate of 9.6% when comparing the annual rate from January 2015 to January 2016 reaching 37,600 Teus. Therefore, the exports to the Mediterranean region have recorded a decrease of 15.6%, dropping to 16,400 Teus.
On the contrary the number of the shipments to Europe has increased to 437,000 Teus in the second half of 2015 compared to 381,000 Teus in the opposite direction reversing the prevailing trade balance from the first half of 2012. The goods that led the trade traffic reversal were mainly the traditional Brazilian commodities such as coffee, sugar and tobacco according to Drewry who also see even more of an increase in the flow of trade because of the soybean harvest: “the increase of the harvest will likely be 12% for this year and there is a good chance that the number of the containers transported must be topped up by bulk carrying operators in order to transport the products which will surpass the volumes loaded in 2015”, reported the publication.


Despite the traffic increase, the ships transport capacity available for both routes has only increased by 1.7% compared to February this and last year. The ship-owners have not benefited from the shipping rates which occurred as a result of “inability to balance supply with monthly fluctuations in demand and the poor use of the ships capacity even on northbound route”.

Guia Marítimo

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