China-Latin America trade strength expected to grow

TRADE from China to Latin America is expected to grow strongly, according to Maersk and CMA CGM spokesmen, and the Boston-based Global Insight (GI) consultancy, reports the Latin Business Chronicle.

"Colombia has had more than 20 years without a recession; its container trade has been growing strongly the last three years. Ports are well-run and efficient and the trade is balanced between imports and exports, which is wonderful for shipping companies," said GI managing director Robert West.

In Mexico alone, TEU imports from China will likely grow 10 per cent, he said. "I'm guessing you will see the same kind of growth in Peru, Chile and maybe Ecuador," Mr West told the Miami-based newspaper.

CMA CGM general manager for Brazil, Nelson Carlini, expects strong growth from Latin America too, especially on Asian routes.

"There's a lot of growth in Brazil," said the regional executive for the world's third largest shipping company. "There's a big movement towards container cargo. Logs are being converted into prepared wood and furniture. You are exporting more manufactured goods and at least semi-prepared parts and accessories. So this is driving container traffic upwards."

A spokesman for Denmark's Maersk Line, the world's biggest cargo carrier, said: "We see Latin America as a high-growth market, both import and export, and it will continue to be an important reefer market with plenty of containerisation possibilities."

Latin American container exports are expected to grow by 6.3 per cent this year, while imports should expand by 7.5 per cent, predicts GI.

The region's container exports to the United States this year will grow by 4.1 per cent, while container imports from the United States should expand by 7.5 per cent, the consultancy said.