Maersk Line has released its first quarter 2016 trade update for Latin America, including headlines for its regional outlook and recent reefer trends.
The group is projecting a contraction in trade for 2016 across the East Coast, primarily driven by Brazil’s recession and lesser so by Argentina. The region is expected to remain weak throughout 2016 with Brazil struggling to stay afloat amid recession which is likely to continue into the following year.
On the West Coast, meanwhile, containerised trade is expected to grow in line with countries’ GDP growth.
“With global demand at an all-time low, Latin American economies will be forced to compete more than ever with each other,” explained Omar Shamsie, president of Maersk Line Latin America and Caribbean. “With many countries competing in the same commodities, like bananas from Ecuador, Costa Rica and Colombia, or scrap metal and avocados out of Colombia and Mexico, it’s clear that the race is on.
"We have seen increased focus on and investment in exports in the region, including Colombia’s investment in avocado production to compete with its neighbours in international markets," Shamsie added. "This has been helped by investment in reefer container technology, which controls atmosphere and temperature, allowing produce to travel further than ever.”