Maersk sees more than 50% increase in export of cotton from Brazil until 2020/21

SÃO PAULO-cotton exports in Brazil plume should increase more than 50% over the next three years, to over 2 million tonnes, amid a crop growing, also designed this Tuesday the Maersk Line, pondering the possibility of a new dynamic in shipments due to lack of containers. In a report, the shipping company said shipments of cotton from Brazil must swing from 1.4 million to 1.5 million tons in the current crop 2018/19, rising to something between 2.1 million and 2.2 million in 2020/21. In the same period, domestic production of the fiber must go to 3 million tons, 2.2 million expected for the current cycle. Leader in shipment of cotton, Maersk made its estimates based on information obtained from the market players. The company's projections are very similar to the Brazilian Government. In your most recent newsletter, the national supply company (Conab) estimated a crop of cotton 2018/19 in 2.2 million tons, with exports of 1.3 million tons. The prospects for this year are records and reflect a strong increase in the area planted. Sowing is concentrated in the States of Mato Grosso and Bahia, and the harvest takes place in mid-year, with shipments intensifying throughout the second half. But as Denis Freitas, Director of the Safmarine, a subsidiary of Maersk, this sales peak is more "diluted" by the lack of containers in the country. " Exports had peaked in September, October and November. But now you are entering for the following year. We have expectation of load throughout the first trimester (2019), "said Reuters. Brazil is a major exporter of agricultural products, provided to manufactured goods, while less important than it sells abroad. With that, there are less containers coming into the country and more need of such equipment to submissions, stated Freitas. That's affected--and affecting--Brazil cotton exports. " With this drop in imports. We're watching the ships come to Brazil with a lot less containers. May have a lack of equipment to meet export demand. When we find a healthy balance between exportation and importation, we don't have the cost of bringing empty container for Brazil, "said the Director of the Safmarine, responsible for the East coast of South America.