DatamarLab panel: Environmental footprint in foreign trade

The first session offered a technical and innovative approach to using real operational data to measure and model emissions in maritime transport. Walter Teixeira Lima Junior, professor and researcher at UNIFESP and chief scientist at DatamarLab, argued that the main challenge today is not the lack of data, but the ability to identify “structuring vectors” within massive datasets.

During his presentation, he highlighted the development of an application based on Datamar’s database, integrating maritime distance algorithms, emissions engines and scientific methodologies. What began as proof-of-concept work on a single vessel is now advancing toward predictive models using machine learning and the development of a “digital twin,” capable of simulating operational scenarios with greater accuracy, reducing error margins and even allocating emissions at the cargo level.

Complementing this view, Thiago Nobre Mascarenhas, head of data and architecture at DatamarLab and Engineering Brasil, emphasized the need to replace traditional top-down models based on aggregated estimates with a bottom-up approach built on granular, real-world data. By incorporating variables such as engine type, speed, hull condition and cargo characteristics, this methodology enables far more precise emissions measurement and more robust predictive models. He noted that progress in decarbonization depends on closer integration between academia and industry to ensure that knowledge is effectively applied.

The session also featured Marcos Silva, Datamar’s CIO, who reinforced the importance of connecting technical expertise with practical application and translating research into real-world solutions for the sector.

DatamarLab panel: Market discussion on environmental footprint

The second session shifted from technical analysis to practical implementation, bringing together executives and specialists to discuss how these solutions can be applied across the logistics chain.

Walter Teixeira Lima Junior revisited the discussion with a critical perspective on artificial intelligence, noting that its value lies not in the technology itself but in its ability to generate cognition and support decision-making. He stressed that decarbonization is ultimately an economic and cultural challenge, requiring structural changes in how the sector shares data and collaborates.

Thiago Nobre Mascarenhas expanded on the role of AI as a key tool for handling complex, high-cognition decisions, such as trade-offs between speed, cost and emissions. According to him, highly granular data — including second-by-second port operations data — is already available, and AI is what enables the transformation of this data into simulations, projections and actionable business insights.

From an operational standpoint, Jeferson Kalckmann Gilgen, pricing and commercial planning coordinator at Porto Itapoá, offered a practical view of the energy transition in ports. While initiatives such as equipment electrification represent tangible progress, he noted that the sector still faces significant challenges related to cost and scale in adopting alternative fuels. Progress, he said, will depend on economic alignment and regulatory pressure.

Cecílio Perez, executive director of the RCGI-USP Carbon Registry, highlighted that the urgency of the environmental agenda is already being driven by increasingly visible climate impacts. He emphasized the growing importance of Scope 3 emissions — indirect emissions across the value chain — and the challenges of measuring them, including the need for reliable data and the risk of distortions such as greenwashing. In this context, data-driven solutions are gaining importance by providing transparency and traceability.

Closing the session, Marcos Silva and Cristiano Kaehler, Datamar’s business intelligence manager, pointed to the historical gap between academia and the market and the need to turn knowledge into practical application. Kaehler highlighted the market’s innovation cycle — from initial enthusiasm to caution and ultimately to the challenge of implementation — noting that the main barrier today is not technological, but execution and management.

Decarbonization in shipping panel

The decarbonization panel brought together academic, regulatory and industry perspectives to discuss pathways for the maritime sector’s energy transition, underscoring that the issue has become a central strategic priority.

Opening the session, Andrew Lorimer, CEO of Datamar, noted that maritime transport accounts for about 2.8% of global greenhouse gas emissions, reinforcing the need to advance transparency, measurement and the use of data to support more sustainable decisions. He also linked the discussion to artificial intelligence initiatives and the growing impact of carbon markets, highlighting the increasing technical complexity of the issue.

Cristiane de Marsillac, CEO of Marsalgado Brasil, offered a historical and strategic perspective, comparing the current transition to past technological shifts such as the move from sail to steam. She emphasized that, unlike previous transitions, the current shift is driven not only by efficiency but also by environmental, regulatory and social pressures. Energy strategy, she said, is becoming a key factor in competitiveness, with regulation playing a decisive role in providing predictability and enabling investment, particularly given the high costs of emerging technologies. She also highlighted Brazil’s strong biofuels base as a potential competitive advantage in the low-carbon economy.

Tiago Lopes, a scientist and professor at USP’s Research Centre for Greenhouse Gas Innovation (RCGI), provided a technical perspective, stressing that lifecycle cost remains the primary decision factor in the sector. He said decarbonization will not occur spontaneously but will be driven by regulation and increasing societal pressure. There will be no single solution, he added, with multiple technologies coexisting — electrification advancing in lighter applications, while hydrogen and other high energy-density fuels gain traction in long-distance heavy transport.

Luís Resano, executive director of the Brazilian Association of Cabotage Shipowners (ABAC), focused on operational realities, noting that fuel choices still depend on cost, availability and infrastructure. While cabotage is the most environmentally efficient transport mode, its share in Brazil’s logistics matrix remains low, representing an immediate opportunity for emissions reduction through expansion. He pointed to biodiesel as a viable short-term solution due to compatibility with existing infrastructure, while emphasizing the need for clear public policies and consistent investment.

Luiza Bublitz, president of Aliança Navegação e Logística, said decarbonization has moved beyond an environmental issue to become a strategic business decision. She highlighted the challenges of a capital-intensive industry with long investment cycles, noting that the transition requires investment, innovation and willingness to act despite uncertainty. Among ongoing initiatives, she cited technologies such as shore power (AMP) and operational improvements to boost energy efficiency. She also stressed the role of cabotage in reducing truck traffic, while noting that its expansion depends on greater multimodal integration and cultural change.

Overall, the panel underscored that maritime decarbonization will be a gradual, multifaceted process dependent on collaboration across the value chain. More than a trend, it is emerging as a core element of industry competitiveness, requiring alignment between technology, regulation, infrastructure and business strategy.

At the close of the second day, participants agreed that the maritime sector already has the data, technology and knowledge needed to advance the decarbonization agenda. The key challenge now lies in integrating these elements, fostering collaboration across stakeholders and, above all, turning information into concrete decisions with real impact.

In December 2018 the Danish carrier surprised many of its peers by coming out with a pledge to be carbon neutral by 2050. Today the company tightened its environmental targets, aiming for net-zero emission targets by 2040 across its entire business including scope 1, 2, and 3.

To get there, Maersk has also upped its green pledges for 2030. The 2030 targets now include a 50% reduction in emissions per transported container in the Maersk shipping fleet and a 70% reduction in absolute emissions from fully controlled terminals. Depending on growth in the ocean business, this will lead to absolute emissions reductions between 35% and 50% from a 2020 baseline.

Maersk stated today, on January 12, that 25% of all cargo transported at sea will be done on ships using green fuels by 2030, suggesting a very significant fleet renewal is on the cards following the recent first few orders for methanol-fuelled vessels. In terms of Maersk’s growing air operations, the aim is to have at least 30% of cargo transported using sustainable fuels by 2030.

Maersk is Denmark’s largest shipowner. Yesterday, Danish Shipping, the nation’s shipowning association, set out its own plans to accelerate the global green transition of shipping. The strategy has set the ambition of Danish shipping to be climate neutral by 2050 without the use of compensation and to have at least 5% of the Danish-operated fleet capable of running on well-to-wake net zero-emission fuels such as green hydrogen, green ammonia, green methanol, and advanced biofuels by 2030.

“Our immediate priorities are to ensure the safety of the crew, the vessel, and the cargo on board. Delays to the vessel’s schedule are expected,” ONE stated in an update.

On November 30, 2020, a stack collapse onboard another of the company’s ships, the ONE Apus, resulted in a massive series of insurance claims.

Container shipping has been battling a series of container stack collapses over the past couple of winters.

Source: Splash247

To read the original article please visit: https://splash247.com/another-one-vessel-hit-by-container-collapse/

The Sea Change Fund has been set up in response to a huge increase in calls for the charity’s help, with demand for grants increasing by 850% in the first 18 months of the pandemic.

The fund will provide small emergency payments to seafarers and their dependents matching the grant criteria, to help address immediate needs.

Sara Baade, Sailors’ Society’s CEO said: “Calls for support have never been greater than now. We launched our Sea Change Fund to help answer these cries, so seafarers and their families who need urgent financial assistance to pay for food, medical bills, schooling or a roof over their heads can get support quickly.”

Sickness, unemployment and bereavement have left rising numbers of seafaring families, who are often from deprived areas of the world to start with, struggling to put food on the table.

Grants are made via an application and can assist with a range of pressing welfare needs, including help with vital bills like food and medicine, education costs, or in emergency situations such as natural disasters or cases of abandonment.

Source: Splash247

To read the original article, please visit: https://splash247.com/new-sea-change-fund-to-provide-grants-for-seafarers-in-crisis/

SM Line, which came into existence around the time that Hanjin Shipping folded five years ago, has revealed it has paid $14m to take a 0.49% stake in HMM.

SM Line recently ditched plans for an IPO. Its fleet size is approximately 11 times smaller than HMM’s. SM Line is part of SM Group, a diverse conglomerate primarily involved in construction, which also owns dry bulk and tanker concern, Korea Line Corporation.

Source: Splash247

To read the full complete article please visit: https://splash247.com/sm-line-buys-into-hmm/

“The acquisition of LF Logistics is an important strategic milestone on our journey to becoming the major global integrator of container logistics; a global logistics company that provides digitally-enabled end-to-end logistics solutions based on control of critical assets,” commented Soren Skou, CEO of Maersk.

Maersk will add 223 warehouses to its existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5m sq m.

LF Logistics specializes in B2B and B2C distribution solutions within retail, wholesale, and e-commerce. It is a privately owned company by Li & Fung (78.3%) and Temasek Holdings (21.7%).

As part of the transaction to acquire LF Logistics, Maersk agreed on a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services in which Li & Fung will focus on the upstream supply chain and Maersk will concentrate on the downstream supply chain.

Source: Splash247

To read the full original article visit the link: https://splash247.com/maersk-to-buy-lf-logistics-for-3-6bn/

The program, object of the agreement signed between the organizations, which is now covered by the fellowship offered by the Grimaldi Foundation, has a duration of 14 months and is divided into three periods. The first one is focused on Fundamental Studies. The second period focuses on Specialized Studies, in which the student must choose one of seven specialization options, and the third focuses on the Dissertation.

Many WMU alumni have worked, or are working, for high-level international institutions, ministries and renowned shipping companies. Maritime institutions, governments, port authorities, and maritime companies value sending young employees to this type of program, which results in human resources gains and in the creating of international contacts for the countries and companies where they originally operate.

Considering the Grimaldi Group’s ties to South America, particularly Brazil and Argentina, where the group has been operating for more than three decades, and to countries in West Africa, where the group has operated for even longer, the Grimaldi Foundation decided to sponsor two students a year from these regions to attend the master’s program (Masters in Maritime Affairs) at the WMU headquarters in Malmo. This act reinforces Grimaldi Group’s social commitment to young professionals and students from these regions, granting them the opportunity to develop their skills in areas related to navigation, build solid networks in the context of world maritime organizations, in addition to creating growth opportunities for these future masters in their professional careers.

The program description is on the website below, as well as details on how to apply for one of the positions offered by the Grimaldi Foundation, in the “donors fellowship” category. Please note the application deadlines and that the program will begin in 2023. Applications expire on May 15, 2022, for students from countries outside the European Union. On the same website, the minimum requirements to participate in the selective process, which will be conducted by the university itself, are made available. Among others, some of these requirements are:

– Bachelor’s degree in a relevant filed, with a preference for courses related to foreign trade;

OR

– Certificate of competence as a Commander, Master or Chief Marine Engineer;

– Proven professional experience related to maritime transportation;

– Proficiency in the English language, proven by an internationally recognized standardized test (TOEFL, IELTS or Cambridge – CAE or CPE)

– Computer skills (Microsoft Office package user level)

For more details on applications and requirements, visit the website: www.wmu.se/programmes/msc-malmo

For more details on the agreement signed between the Grimaldi Foundation and the World Maritime University, visit: www.grimaldi.napoli.it/en/read_216.html

The company operates with its own structure throughout the entire logistics chain for import and export and is preparing to soon inaugurate another REDEX OEA terminal on the left bank of the port of Santos, in Guarujá.

The new terminal will double the REDEX area that S.Magalhães & Essemaga has at its customers’ disposal, allowing it to begin to offer service on both sides of the Port of Santos, a differential that serves the market even more efficiently.

The new terminal will be inaugurated with the capacity to move 30,000 containers per year and to serve around 150 bi-articulated vehicles per day of various types of cargo and movement to warehouses and/or containers, in addition to having 120 plugs for containers with refrigerated/frozen loads.

The services will be carried out using the same level of quality and standards recognized in operations at the Santos REDEX Terminal, in Alemoa, for services that follow the cross-docking model.

Possible expansions at the terminal are already being considered in the short term, seeing that a good area is preserved for cargo parking. In addition, investments in monitoring and modernization are frequent.

Among the technological investments, an application is under development that will help the internal terminal management system of S. Magalhães & Essemaga (GTSM), which aims to ensure the speed of information. With the platform, it is possible to carry out the warehouse’s operational processes through tablets, replacing paper and optimizing the process.

S. magalhães & Essemaga has been winning the trust of large companies in the segment for over 100 years”. It is the only one that operates all the logistical processes and retro ports with its own structure, REDEX OEA terminals, customs management, and highway fleet. It is important to emphasize that from order to delivery, the entire import and export process follows integrated planning, without outsourcing.

Government signs Memorandum of Understanding with South Korea for investments in the port area: In January, the Ministry of Infrastructure signed a Memorandum of Understanding with the South Korean government to encourage foreign trade and promote the exchange of must collaborate to encourage economic growth through the exchange of information on business opportunities, which includes logistics parks and port development projects.

Brazil and Argentina sign a Cooperation Agreement in the agricultural sector: Representatives of Brazil and Argentina signed an agreement to diversify the agricultural agenda between the two countries. One of the themes agreed upon is Argentina’s approval of the International Health Certificate model for the export of frog meat from Brazil. The International Zoosanitary Certificate model was also approved for the export of swine semen from Brazil to Argentina. Brazil reciprocally approved the International Zoosanitary Certificate model proposed by the Argentines for the importation of breeding cattle from Argentina.

Single Foreign Trade Portal reduces import bureaucracy at ports, airports, and borders: The implementation of the Single Foreign Trade Portal, an initiative of the Ministry of Agriculture and SECEX (the Secretariat of Foreign Trade of the Ministry of Economy) allows low-risk cargo or cargo which only requires document control to be released within just a few minutes, optimizing the inspection team time.

Phytosanitary Certificates are now issued with an electronic signature: As a result of the Coronavirus pandemic, the Ministry of Agriculture implemented the electronic signature for Phytosanitary Certificates that accompany the export of plant products. The measure was aimed at reducing physical contact between foreign trade agents and federal inspection.

Brazilian Internal Revenue Service extends the deadline for submitting a Certificate of Origin for imports: The Brazilian IRS has extended the deadline for submitting the Certificate of Origin to 60 days after the registration of the Import Declaration. The Certificate of Origin is a document that certifies the origin of the merchandise traded between countries that have trade agreements, which results in tariff benefits for the importer. The extension of the deadline for the presentation of the document was due to the difficulty encountered by Brazilian importers to obtain the document from the official agencies of the countries since they were closed due to the coronavirus pandemic.

European Union-Mercosur agreement is under pressure from France, Germany, and 265 other entities: In June, France declared its opposition to the free-trade agreement between the European Union (EU) and Mercosur. In addition, 265 more organizations were also mobilized against the agreement. The attacks in Europe are also growing due to positions taken by President Jair Bolsonaro in the environmental area. At the same time, a “collective” of 265 organizations sent a letter to German Chancellor Angela Merkel and all 27 EU member states to reject the agreement with Mercosur. Among the entities are Attac, Agricole Confederation, League of Human Rights, and Foodwatch. The group tries to take advantage of the loophole opened by the parliaments of Austria, the Wallonia region of Belgium, and the Netherlands, which withdrew their support for the bi-regional agreement. The entities claim that the EU-Mercosur agreement implies worsening environmental destruction and the climate crisis to expand car exports and monocultures in the forest.

Mexico postpones free trade agreement with Brazil on heavy vehicles for three years: in June, the beginning of a free trade agreement between Mexico and Brazil involving heavy vehicles was postponed for three years. The pact was scheduled to start on July 1, 2020, but was postponed to July 2023.

“Operation Asia” Brazilian IRS Combats Billion-Dollar Fraud in Foreign Trade: In June, the Brazilian IRS and the Federal Police launched “Operation Asia” with the objective of combating the under-invoicing scheme for goods imported mainly from Asian countries, with a large amount of evaded taxes and irregular remittance of foreign currency through money changers. The operation targeted the scheme’s mentors, companies used by investigated groups and stakeholders who register under-invoiced statements and submit false documents to Customs Authorities.

CAMEX adopts new rules to zero the import tax to avoid shortages: In July, CAMEX (the Chamber of Foreign Trade) approved new rules to zero the import tax on up to 100 Mercosur Common Nomenclature (NCM) product codes to avoid shortages in the national market. In addition, the goods will now have the tax rate reset, replacing the 2% level of the previous rule.

Peru files a complaint against Brazil at the WTO over tariffs on PET: The World Trade Organization (WTO) issued a statement stating that Peru has filed a complaint against Brazil over tariffs on polyethylene terephthalate (PET) and the tax treatment of Brazilian imports to the country. According to the note, the Peruvian complaint applies to definitive anti-dumping measures in Brazil on this polymer used in weaving and packaging and the tax treatment of products in general through the imposition of the Tax on Industrialized Products (IPI). The complaint was circulated to entity members on July 15.

Government promotes Automotive Free Trade Agreement with Paraguay: In August, President Jair Bolsonaro enacted the Automotive Free Trade Agreement signed with the government of Paraguay in February. The document’s objective is to facilitate trade and customs cooperation between the two countries, especially for automotive products. Under the agreement, parts and vehicles sold by the two countries will have minimum or zero tariffs, but the range for free trade will vary between the two countries.

SECEX eliminates license requirements for 210 imported products: The Foreign Trade Secretariat of the Ministry of Economy (SECEX / ME) eliminated the requirement for automatic import licenses for 88 products and non-automatic licenses for another 122 different goods. This allows the dispensation of 159 thousand automatic licenses and 111 thousand non-automatic licenses approved in 2019, generating savings for Brazilian importers of more than R$ 23 million with the payment of fees that were charged for obtaining these documents. Among the products that can be imported without the need for licenses are wall coverings, acrylic wires, and steel tubes, which previously depended on SECES approval – directly or by delegating powers to Banco do Brasil – as a requirement prior to completion of imports into the country.

A free trade agreement with Brazil gains green light from the Chilean Senate: In August, the Chilean Senate approved a free trade agreement with Brazil that complements a 1990 pact with the Mercosur bloc and incorporates issues related to telecommunications, electronic commerce, environment, and SMEs. The treaty “will incorporate new cutting-edge terms, update existing ones, and allow small and medium-sized Chilean companies to have equal access to the large Brazilian public procurement market. It also provides for the elimination of ‘roaming’ between the two countries.

Government sanctions law that extends deadlines for exporters in drawback regimes: in September, President Jair Bolsonaro sanctioned Law No. 14.060, which allows the exceptional 1-year extension of the deadlines for complying with drawback suspension and exemption regimes. These regimes waive taxes on local imports and purchases of inputs used in the production of goods for the foreign market. The new legislation originated from Provisional Measure 960, issued on May 4, 2020, and is part of actions to reduce the impacts of the Covid-19 pandemic on the Brazilian economy.

Chamber approves a provisional measure that dispenses export target in SPA due to the pandemic: in September, the Chamber of Deputies approved Provisional Measure 973/20, which exempts companies located in export processing zones (ZPE) from reaching 80% of this year gross revenues from exported goods. The text went to the Senate. It is worth remembering that ZPEs are industrial districts, whose companies benefit from the suspension of taxes to export, among other benefits. To qualify for the tax benefit, at least 80% of the total gross revenue must come from exports, a rule created by Law 11.508 / 07.

About 68% of industries had difficulties obtaining inputs in Brazil: A special survey carried out by the National Confederation of Industries (CNI) pointed out that in October, 68% of the companies consulted had had difficulties in obtaining inputs or raw materials in the domestic market, and 56% of companies that use imported inputs regularly had difficulties acquiring them in the international market. According to the CNI, “the economy reacted faster than expected. Thus, there was a mismatch between supply and demand for inputs. And both producers and suppliers had low inventories. At the height of the crisis, we saw the demobilization of production chains and low stocks. In addition, we have a strong devaluation of the real, which contributed to the increase in the price of imported inputs”.

Argentina leaves US$ 100 million in Brazilian exports stuck at the border: According to the media, since the beginning of the year, the Argentine government has been slow to release the entry of Brazilian imports, not complying with the rules of the World Trade Organization (WTO) and the agreement bilateral agreement between both countries.

Brazil and the United States conclude investment facilitation agreements: In October, President Jair Bolsonaro reported that representatives from Brazil and the United States concluded negotiations on three agreements demanded by businessmen from both countries –  on trade facilitation, good regulatory practices, and anti-corruption.

Mercosur negotiates agreements with Lebanon, Tunisia, and Morocco: in October, the Special Secretary for Foreign Trade and International Affairs of the Ministry of Economy, Roberto Fendt, stated that Brazil is negotiating with Mercosur for new free trade agreements with some Arab countries. “In fact, Mercosur has already signed a free trade agreement with Egypt and Palestine. It is currently negotiating an agreement with Lebanon, and has also initiated negotiations with Tunisia and Morocco,” stated Fendt. The agreement with Palestine has not yet entered into force.

Brazil suspends import concessions from Costa Rica in retaliation for Brazilian sugar safeguards: In November, the Brazilian government suspended concessions on imports of certain products originating in Costa Rica. The measure was taken through a CAMEX resolution because of Costa Rica’s decision to apply unjustified safeguards to sugar imports from Brazil and is supported by the WTO Safeguards Agreement. In practice, the measure will represent a 27.68% surcharge on imports of Costa Rican products such as chocolates and teas. The decision was taken in retaliation for the application of safeguards to sugar imports from Brazil by Costa Rica, which represents a 27.68% surcharge on the Brazilian product.

Brazil is victorious against Indonesia in the WTO: In November, Brazil had a new victory against Indonesia in the World Trade Organization (WTO). According to a statement from the Ministry of Foreign Affairs, there was an “undue delay” by Indonesia in recognizing Brazil’s health certification process for exports of chicken meat to the Asian country.

CAMEX approves a reduction in the import tariff on toys: In November, the Executive Management Committee (GECEX) of the Chamber of Foreign Trade (CAMEX) – a collegiate body chaired by the Ministry of Economy – approved the reduction from 35% to 20% of the tariff applied to toy imports. The measure should start to have more expressive effects on prices at the beginning of 2021, considering the time necessary for the realization of new imports already supported by the tariff reduction. The reduction to 20% equates the Brazilian tariff to the Mercosur Common External Tariff (TEC) and eliminates the exceptional tariff increase that applied to imports since 2011.

Chamber approves basic text of BR do Mar: In December, the Plenary of the Chamber of Deputies failed to complete the vote on Bill 4199/20, to encourage coastal shipping, known as BR do Mar. Despite that, parliamentarians of the Chamber approved the basic text of the BR do Mar proposal, in the form of the substitute submitted by the rapporteur, Deputy Gurgel (PSL-RJ), to the original of the Executive Branch. Although most of the highlights have already been analyzed, six remain to be analyzed, which may alter the proposal. The project progressively releases the use of foreign ships in Brazil without the obligation to contract construct units at local shipyards. The text foresees that companies will be able to rent boats to operate in cargo transportation.

CAMEX extends zero tariffs for importing medicines and supplies against Covid-19: In late December, CAMEX extended the validity of Resolution No. 17/2020, which reduced the Import Tax rate to zero for products considered essential to face the pandemic of Covid-19. The extension was approved at a virtual meeting of the Executive Management Committee of CAMEX (GECEX), on December 18, and published on December 29 in the Federal Register, in GECEX Resolution 133/2020. The reduction in the rates would have expired on December 31, 2020, but was extended until June 30, 2021, for 298 products, covering medicines and their inputs, tests for virus detection, and vaccines.

Sugar and Ethanol: Sugar showed a very solid performance in 2020. According to the 3rd Survey of the 2020/21 Sugarcane Crop, released in December by CONAB (the national food supply company), Brazil’s sugarcane sugar production for the current harvest, 665,105 million tons, approaches the historical record set in 2015 when 665.6 million tons of sugarcane were harvested. Compared to last season, growth is forecast at 3.5%. Sugar exports totaled 23.7 million tons in the first eight months of this 2020/21 harvest (April to November), 79.2% more than in the same period of 2019/20. In relation to the entire past cycle, the volume is already 25% higher. According to the state-owned company, the expectation is that the 2016/17 record will be exceeded when Brazilian shipments reached 28.3 million tons.

But increased exports generate logistical problems. In June, the wait time for loading sugar at a Rumo terminal in the Port of Santos reached 45 days according to the maritime agency Cargonave. As a comparison, in the same period of 2019, the average waiting time was five to seven days.

To circumvent these problems, some alternative solutions were adopted. After 15 years, the Port of São Sebastião, located on the north coast of São Paulo, began to carry out sugar transport operations again. In addition, after a decade-long hiatus, break-bulk sugar export operations were carried out at the Port of Santos, since the terminals operating in containers were saturated.

According to a report by the United States Department of Agriculture (USDA), the growth in exports is due to the country’s large exportable sugar surplus and the stable demand from countries that import Brazilian sweetener. “Despite the Covid-19 pandemic and logistical obstacles at ports, including long waiting times for loading, the significant devaluation of the real against the dollar kept the Brazilian product competitive,” says the report.

See a monthly history of Brazilian sugar exports on the chart below:

Brazilian Sugar Exports (HS 1701) | Jan 2015 to Oct 2020 | WTMT

Source: DataLiner

In relation to ethanol, in September, CAMEX (the foreign trade chamber) approved a quota that allowed the import of 187.5 million liters of ethanol exempt from the 20% Common External Tariff (TEC) for 90 days, an addendum to the annual quota of 750 million liters that had expired at the end of August.

The measure, tailored for American farmers in order to please President Donald Trump in the middle of an election race, expired in December and has not been renewed. This is because the Foreign Ministry did not make progress in negotiations to expand the entry of Brazilian sugar into the United States, and Trump’s defeat in the American elections put an end to further conversations on this subject.

Coffee: despite having recorded good export numbers, logistical problems hindered coffee shipments in 2020. Datamar data indicate that there was an imbalance of almost 80,000 containers in Brazil in August. There were almost 251,000 containers leaving the country and only 172,000 arriving. In January, the arrival of 216,000 containers and the departure of 201,000 were registered. And coffee, unlike other commodities, is exported in containers. The devaluation of the real, as well as the coronavirus pandemic, boosted a strong flow of exports, but significantly reduced imports.

Nelson Cavalhaes, the president of CECAFÉ (the Brazilian council of coffee exporters), stated that in September, despite registering good numbers, “the export results could have been 10-15% better had it not been for the logistical problems of lack of containers and space on boats”.

Meat: meat exports were heated in 2020, motivated both by the competitive dollar and by the shortage of proteins in China due to the African swine flu which killed many pigs and reduced the domestic supply of meat.

According to ABPA (the Brazilian animal protein association), in the first 11 months of the year, chicken meat exports maintained a high of 0.69%, with 3.849 million tons shipped between January and November 2020 compared to 3.823 million tons in the same period of 2019. Despite this, the dollar revenue accumulated in the period is US$ 5.543 billion, a number 12.8% lower than that registered in 2019, when US$ 6.358 million was registered.

In relation to pork, in the 2020 year-to-date (January to November) figure, international sales of this protein reached 940,900 tons, a number 39.5% higher than the total shipped in the same period of 2019, 674,200 tons. And, for the first time in history, pork exports from Brazil exceeded two billion dollars, reaching US $ 2.079 billion, 47.1% more than the US $ 1.413 billion made between January and November 2019 .

According to ABPA president, Ricardo Santin, as in 2019, the health crisis of the African swine flu that impacted the swine herd in Asia, part of Europe and Africa continued to boost Brazilian poultry and pork exports. “Asian nations have consolidated themselves as the main importers of poultry and pork meat from Brazil and were the main vectors of the year’s result in both sectors,” he explains.

In the case of beef, estimates by ABIEC (the Brazilian association of meat-exporting industries) indicate that Brazil should export 2.2 million tons of beef by the end of this year. The forecast is 8.8% higher than the total for 2019. ABIEC represents 32 companies in the sector.

If the estimate is confirmed, protein exports should end the year with revenues of US $ 8.53 billion, 11.8% above that reached last year. From January to November, sales totaled 1.84 million tons, exceeding the volume registered in that interval, in 2019, by 9%. Over the last eleven months, sales grew 13.9%, reaching US$ 7.76 billion.

Despite the good numbers, the year was also marked by the suspension of exports from several Brazilian meatpackers to China and Hong Kong, who claimed to have found traces of the coronavirus in imported meat packaging, temporarily suspending the licenses of some plants, which were later reversed. China also requested greater attention not only from Brazil, but also from other meat suppliers, for disinfecting packaging and containers. The Philippines and Indonesia also ended up placing embargoes on Brazilian meat.

In 2020, there were also some market openings for Brazilian proteins: Mexico opened a market for Brazilian eggs, Myanmar for pork, Egypt for poultry, Thailand for beef and pork, and the United States for fresh beef. South Korea also started importing Brazilian shrimp.

The chart below shows a monthly history of Brazilian meat exports:

Brazilian Meat Exports (HS 0202, 0203 and 2007) | Jan 2017 to Oct 2020 | TEU

Source: DataLiner

Rice: Rice was a hot topic in 2020 due to the high price that reached the shelves of Brazilian supermarkets. Brazil exported so much rice that it harmed its domestic supply. Data from the SECEX (the Foreign Trade Secretariat) compiled by ABIARROZ (the Brazilian rice industry association) show that Brazilian exports of rice (husk base) totaled 153,500 tons in October, a volume 84% higher than in the same month of 2019 (83,570). In the commercial year for rice (March-October), Brazil exported 1.54 million tons of the cereal, compared to 852,240 a year earlier. According to ABIARROZ, rice exports (husk base) reached 1.69 million tons from January to October, compared to 1.08 million tons in the same period of 2019.

To contain the increase in the product in the domestic market, GECEX (the executive management committee of CAMEX (the chamber of foreign trade )) decided to zero the import tax rate for paddy and processed rice until December 31. The temporary reduction in the import tax on rice was restricted to a quota of 400 thousand tons, applicable to products covered by codes 1006.10.92 (rice with unparboiled husks) and 1006.30.21 (semi-blanched or blanched rice, not parboiled) of the Common Nomenclature Mercosur (NCM).

See Brazilian rice imports and exports since 2017:

Brazilian Rice Movement (HS 1006) | Jan 2017 to Oct 2020 | WTMT

Source: DataLiner

Soy and Corn: Soy was another commodity that Brazil exported freely in 2020, mainly to China. Data released by Chinese Customs in October indicate that China imported 51.4% more Brazilian soy in September than in the same month of the previous year. 7.25 million tons of oilseed were imported from Brazil in September, compared to 4.79 million tons in the same period in 2019, according to the agency.

As in the case of rice, external demand has caused internal shortages.

To balance the supply and demand of grains in the domestic market and to contain high prices, the GECEX decided to zero the import tax rate for soybeans and corn. In the case of soybeans, the temporary reduction will be valid until January 15, 2021 and includes NCM codes 1201.90.00, 1507.10.00, and 2304.00.10, which refer, respectively, to soybeans, soybean meal, and oil. As for corn (NCM 1005.90.10), the product was included in LETEC (the Brazilian list of exceptions to the common external tariff), with a reduction from 8% to 0%, valid until March 31, 2021.

The increase in world demand for food due to the Covid-19 pandemic generated similar reactions in the markets related to these two commodities. In the case of corn, there was an increase in domestic consumption to supply the production of animal protein, which registered growth in exports, a movement that has been registered in the last two decades at a rate of 14.3% per year. In the case of soybeans and derivatives, such as bran and oil, there was also an increase in foreign sales, which gained momentum with the appreciation of the dollar.

The graph below shows the history of Brazilian soy exports from 2017:

Brazilian Soy Exports (HS 1201) | Jan 2017 to Oct 2020 | WTMT

Source: DataLiner

The following graph shows corn exported by Brazil since 2017:

Brazilian Corn Exports (1005) | Jan 2017 to Oct 2020 | WTMT

Source: DataLiner (To request a DataLiner demo click here)

With the tax exemption, soy imports increased. Brazil even imported American soy, which is an unusual situation. Data released by SECEX point out that in November, Brazilian soy imports reached 122.4 thousand tons, 20 times more than in November 2019 (6 thousand tons). Purchases cost US$ 49.2 million, compared to US$ 1.9 million a year earlier, as the average value of the ton purchased increased from US$ 328.8 to US$ 402.4.

From January to November, imports totaled 748,000 tons, compared to 131,000 in the first 11 months of last year. According to SECEX, the value of purchases reached US$ 245 million, almost six times higher than in the same period of 2019 (US$ 41.1 million).

Brazilian imports of soybean oil increased by more than 8,000% in November, with Argentina offering most of what Brazil bought on the international market to deal with a shortage of raw materials.