Brazil’s trade situation improved in November, with exports in dollar terms rising 18% on a year earlier – the fastest rate since November 2011. Yet, this won’t have helped shippers as outbound volumes handled actually fell 5.7% in TEUs, as discussed in Panjiva research of December 1.

Fortunately though import volumes jumped 16.7%, Panjiva data shows, with the result that overall TEUs handled increased 4.9% on a year earlier to over 136,000 for the month. The shippers that grew the quickest were Zim, Evergreen and Yang Ming – the first two reversed a significant drop the prior month. The pattern of weaker exports and stronger imports appears to have continued in December according to preliminary government figures.

Chart compares combined Brazilian import and export volumes by SCAC code for November against year earlier (horizontal) and previous month (vertical) Source: Panjiva

The biggest issue for the Brazilian shipping industry in 2017 however is the consolidation of Maersk and Hamburg Sud (alongside its affiliate Alianca). The combined entity would have had a 37.0% market share in the three months to November 30, which in turn was 2.12% points higher than the same period a year earlier.

The main loser in the organic battle for market share has been MSC, which lost 34 basis points of market share. However when combined with Maersk and Hamburg Sud in an enlarged 2M Alliance the three would hold a 55.5% share of the Brazilian shipping market. The number three player – assuming the merger is approved – will be Hapag-Lloyd. Among the second tier players COSCO has been rebuilding market share the most rapidly, reaching 1.93% after adding 79 basis points over the past year.

Calculations based on sum of import and export shipment data for Brazil for three months vs. same period a year earlier Source: Panjiva