Mixed fortunes for Hamburg Süd

It noted, however, the damping affect on Brazilian exports of the increased exchange value of the Brazilian real which, it said, “made products such as footwear, leather goods, timber and paper barely competitive in many countries”.

In addition, animal diseases such as avian influenza and foot and mouth undercut the key reefer trades from Brazil and Argentina. The company also noted the “increasing strain” imposed by the steady cargo growth of recent years on South American port infrastructure, especially in Brazil.

As a result, said Hamburg Süd, “2006 saw considerable hold-ups and delays in the ports, combined with negative repercussions on service quality and additional operational costs.” It expects the problem of overstretched ports to persist in 2007.