Drewry: Southbound Asia to ECSA Container Volumes Dwindling

Having started the year with a flurry of growth, southbound Asia to East Coast South America (ECSA) container volumes have slunk backwards, with new carrier agreements only adding to the oversupply and putting severe downwards pressure on spot rates, according to Drewry Shipping Consultants.

Following first-quarter growth of 7.2%, container volumes on the southbound Asia to ECSA trade deteriorated alarmingly in April and May. Statistics from Datamar show that southbound box volumes fell by 7.2% year-on-year in April with May traffic slumping by 16.5%. The net result is that after five months volumes are marginally down on the same year-to-date point in 2014, down by 0.2% to 598,000 TEU, Drewry reports.

The slowdown was perhaps inevitable given the weakness of the Latin American currencies against the U.S. dollar and the recessionary state of the regions’ largest economy Brazil, says Drewry.

The weakness of the Brazilian economy is demonstrated in the container flows from Asia, which have dragged down the ECSA total. Year-to-date Asia-Brazil traffic was down by 3.6% to 443,000 TEU after five months, whereas Asia-Plate (Argentina and Uruguay) was still ticking along nicely, up by 10.7% to 155,000 TEU.

Drewry’s rolling 12-month average for total Asia-ECSA volumes indicates that the trade will remain in deficit for the remainder of the year as it is currently tracking at around -4%, with that strong first-quarter merely providing a temporary lift.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CEDA Dredging Days 2019

CEDA Dredging Days programme will follow its successful format of contributed peer-reviewed…

read more >

Offshore Wind Europe 2019

#OWEU19 is a meeting place for governments, developers and suppliers to grow the confidence in wind power. Perfect to grow your business by securing new customers, meeting officials and industry heads.

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >