Soaring freight costs hit LatAm polymers trade
Publish date: 2024-06-18
Latin American plastic product manufacturers have been facing a significant surge in freight costs from Asia to the Americas since early April, with prices exceeding $10,000 per 40-foot container (FEU) heading into June, compared with approximately $1,170/FEU at the end of March.
The phenomenon is connected to a logistics readjustment following disruptions on major global shipping routes since last year. But the current situation also has a unique cause: electric vehicles imports from China to Latin America.
This window of opportunity exploited by Chinese manufacturers has overloaded ships on the China-Brazil route, both for cars and containers filled with spare parts and components. Importers of other materials, such as polyethylene (PE) and polypropylene (PP), have been significantly affected.
The phenomenon is connected to a logistics readjustment following disruptions on major global shipping routes since last year. But the current situation also has a unique cause: electric vehicles imports from China to Latin America.
This window of opportunity exploited by Chinese manufacturers has overloaded ships on the China-Brazil route, both for cars and containers filled with spare parts and components. Importers of other materials, such as polyethylene (PE) and polypropylene (PP), have been significantly affected.
Source: Argus Media
