A. P. Moller Maersk Trade Report
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1 A.P. MOLLER MAERSK INFORME DE COMERCIO / Q / COLOMBIA A. P. Moller Maersk Trade Report Q COLOMBIA
2 A.P. MOLLER MAERSK TRADE REPORT / T / COLOMBIA CONTAINERIZED EXPORTS, PROTAGONISTS OF Summary: Containerized foreign trade grew 5%* during 2017; Exports increased by 12%* and imports grew by 1,1%*. The consolidation of new markets in Europe, Asia and the Americas set the trend in containerized foreign trade. The conversion of traditional means of transport to refrigerated containers drives Colombian exports around the world.
3 A.P. MOLLER MAERSK TRADE REPORT MAERSK / Q / COLOMBIA was a year for consolidation and contrasts for containerized foreign trade. Innovation, new technologies, the opening of new routes and the solidification of Free Trade Agreements between Colombia and other countries promoted the export of Colombian agricultural products, achieving a growth of 12% *. This growth was driven by the performance in the first three quarters of the year, in which we saw how the Colombian agricultural industry boosted trade by improving its competitiveness and reaching new markets. On the other hand, imports registered a moderate growth of 1,1%*, which responds to the conservative attitude of importers, the growing mistrust of Colombian consumers and economic factors such as the tax reform. Colombian agriculture continues to open doors in Europe When analyzing the data for 2017, one trend stands out is the strong growth of Colombian fruit exports in refrigerated containers to Europe, both in terms of volume and number of destination. In terms of commodities, avocados and bananas took the prominent position with exports in containers growing 27,9%* and 15,4%* respectively, thanks to (i) the consolidation of bananas that drove exports of new products to Europe; (ii) cargo conversion from traditional vessels to refrigerated containers; (iii) the opening of new routes that facilitate products reaching final destinations without intermediaries. *The figures that appear in this report refer to the number of container movements during January - December 2017 and the same period of the previous year.
4 A.P. MOLLER MAERSK TRADE REPORT MAERSK / Q / COLOMBIA 4 These factors, together with the move to refrigerated containers which allow the trading of smaller shipping units and the possibility of choosing between several routes, allow exporters greater flexibility within their commercial strategies. Now, the exporter can evaluate the market s conditions of several countries and schedule smaller shipments in order to cover the demand of new customers any time of the year, explains Juan Camilo Vásquez, Colombia Sales Manager for Maersk line. The exporter can evaluate the market s conditions of several countries and schedule smaller shipments in order to cover the demand of new customers any time of the year, Juan Camilo Vásquez Looking at the destination markets, we saw a strengthening of recurrent markets that have previously been buying banana, avocado and pineapple, such as Belgium, Germany, Holland and Spain that grew 24,7%*, 22,4%*, 6,5%* y 1,2%* respectively. In addition, the growth of relatively new markets was observed, including Morocco, France, Slovenia, Russia and Sweden that increased by 364,8%*, 140,6%*, 75,1%*, 69,4%* y 28,8% respectively. *Las cifras que aparecen en este informe se refieren a movimientos de contenedores durante el primer trimestre de 2017 y se referencian al mismo período del año anterior.
5 A.P. MOLLER MAERSK TRADE REPORT MAERSK / Q / COLOMBIA 5 Exports to Asia soar during the last quarter of 2017 During the final quarter of 2017, Colombian exports to Asian countries achieved an increase of 12,8%*, marked by the export of meat, wood, flowers, and scrap, products that grew 188,6%*, 186,5%*, 87,5%* y 74,6%* respectively. In contrast, we saw a decrease of 1,9%* in exports to European markets, due to a reduction in the sale of pineapple, avocado and banana equivalent to 31,3%*, 4,9%* and 3,8%* respectively. Imports to Europe and Asia stabilize During 2017, imports from European countries registered a growth of 9,5%* driven by the purchase of materials for construction and the agro-industry. In terms of products, the main ones from Europe were metal, paper, plastic, construction materials and machinery, whose imports in containers increased 39,9%*, 22,5%* 19,5*, 18,4%* y 14,7%* respectively. The purchase of Asian products grew 1,0%* thanks to imports of various products, such as plastic which increased 11,2%*. Although imports saw a positive balance of 1,1%* growth, throughout 2017 there was a significant drop in the automotive industry, which is one of the most important sectors for trade. In general terms, car and motorcycle imports from Europe decreased 12,5%* and those from Asia fell 11,8%*. This can be validated by the report presented during January 2018 by the Colombian Association of Motor Vehicles in which they highlighted that: "during 2017 there was a decrease of 6.1% in the sale of vehicles and 15% in the sale of vehicles and motorcycles. Seeing the positive performance of imports in the automotive sector during the last quarter of 2017, we believe that consumer confidence is slowly being restored and we expect that demand will increase for cars and motorcycles during 2018, says Juan Camilo Vásquez, Colombia Sales Manager for Maersk line. *Las cifras que aparecen en este informe se refieren a movimientos de contenedores durante julio - septiembre de 2017 y se referencian al mismo período del año anterior.
6 A.P. MOLLER MAERSK TRADE REPORT MAERSK / Q / COLOMBIA 6 The Americas: the surprise of At the end of 2017, the total containerized foreign trade between the Americas showed solid growth of 4%* relative to the previous year, thanks to the 11%* increase in exports and the 2,1%* decrease in imports. During this year, there was a positive behavior in exports to the Americas, both to the north and the south. The United States continues to consolidate itself as the main trading partner with growth of 10,4%*, driven by the export of traditional products such as flowers, bananas and sugar which registered increases of 82,8%*, 37,4%* y 30,5%* respectively. Among other destinations, the consolidation of Argentina stands out with an increase of 36,2%* driven by the export of traditional products such as coffee that registered a growth of 133,3%* and construction materials that increased by 441,9%*. In addition, we see a positive development in exports to Chile with an increase of 23,6%* marked by the exchange of sugar, paper, and flowers that recorded increases of 162,8%*, 88,5%* y 24,3%* respectively. What we are seeing in the Americas is a positive behavior driven by the opening of more direct routes that bring products closer to their final destination and the use of refrigerated containers, explains Yenia Abadía, Colombia Cluster Manager for SeaLand. In contrast with the good result of exports and contrary to trade prospects with the Pacific Alliance countries and other trading partners of the Americas, imports at the end of 2017, recorded a decrease of 2,1%* that may be due to the fact that agriculture and construction materials, such as paper, plastics, fertilizers and machinery are being brought from European and Asian markets. This decrease in imports may be influenced by a conservative stance on behalf of Colombian importers, and by the distrust of consumers that seems not to have recovered yet. On the other hand, this may respond to price competition; traders are bringing their products from the most competitive destinations, says Yenia Abadía, Colombia Cluster Manager for SeaLand. Importers are bringing their products from the most competitive destinations Yenia Abadía
7 A.P. MOLLER MAERSK INFORME DE COMERCIO MAERSK / Q / COLOMBIA 7 In conclusion In 2017, containerized foreign trade exceeded all expectations due to the consolidation of and increase in exports of Colombian agricultural products and thanks to the increase in the use of refrigerated containers. The trend of market diversification, added to the efforts of the Colombian Government to promote the country s agriculture and the opening of new routes such as CARMED, which will directly carry Colombian fruits from the Caribbean to the Mediterranean, set the positive standard and the good path for traders during In addition, the current use of technologies such as Remote Container Management (RCM) and the use of the future use of technologies, such as Blockchain, will enable customer transactions. This is why we expect Colombia's containerized foreign trade to grow between 4-5% in This expectation places Colombia as one of the countries with the highest growth in Latin America in Exports will increase between 4-5% driven by the opening of new markets and a greater use of refrigerated containers. Furthermore, a notable recovery of imports is expected of between 3-4%, driven by the reactivation of infrastructure work in the country and the boost expected from agriculture sector, the electoral period and the World Cup.
8 A.P. MOLLER MAERSK TRADE REPORT / Q / COLOMBIA 8 About Maersk Line Maersk Line is the largest container transportation company in the world. It has been operating for more than 20 years in Colombia and leads the sector today, transporting one of every five containers moving in the country. With operations in more than 120 countries and a fleet of more than 600 ships that sail the world's most important trade routes, Maersk Line has the ability to observe international trade trends from a privileged perspective. Acerca de A.P. Moller - Maersk A.P. Moller - Maersk employs around employees in Latin America and a total of more than worldwide. The group has offices in more than 130 countries. A.P. Moller - Maersk is an international business conglomerate in areas such as transport, the ports sector and the energy sector. The group emphasizes a lot on the training and well being of its employees, as well as long-term sustainability. About SeaLand SeaLand is a division of A.P. Moller - Maersk dedicated to the Intra-American market. SeaLand began operations on January 1, 2015, with a sales team and support staff with local knowledge located in Colombia and throughout the Americas to serve the unique needs of exporters and importers in the region. With a strong tradition of service focused on the needs of customers, the company's infrastructure provides greater service flexibility and enables the company to act quickly to respond to the dynamics of the market. More than 240 dedicated people make up the SeaLand organization. For more information or to request an interview, please contact: Camilo De Guzmán: Tel: +57 (300) / cdeguzman@2waycomm.com Paola Barrera: Tel: +57 (321) / pbarrera@2waycomm.com Camila Ruiz: Tel: +57 (315) / cruiz@2waycomm.com Ángela Moreno: Tel: +57 (300) / amoreno@2waycomm.com Acerca de APM Terminals Headquartered in The Hague, APM Terminals is one of the largest port operators in the world. The company has 20,600 employees and a global network that includes 62 port facilities and operational terminals in 38 countries. It currently has 9 ports under construction and 135 domestic service operations in 39 different nations. APMT works together with all the actors involved in the supply chain such as shipping lines, importers and exporters, governments, among others, with the purpose of offering solutions that contribute to the achievement of the company's performance goals and objectives and the nations.
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