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Freight from China to South America recovers, overcapacity falls

Staff Writer |
The transfer of capacity in maritime traffic from the Far East to Brazil — one of the top markets of Brazil's foreign trade — has started to show results for the shipping industry.

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The index that measures the average freight from China to South America rose 50.7% in June compared with the same month of 2015, rising to 672 points from 446 points.

The move contrasts with a global decline of 21.6% in the index between China and the rest of the world.

The surge in China routes to South America is due to the adjustment carried out by the shipping industry, which eliminated overcapacity of vessels in the routes to raise prices.

Freight has faced a downward trend, with rates that reached $50, due to a combination of excess idle capacity and low trade volumes.

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