B2B Marketplace
B2Brazil.com is a global B2B marketplace promoting trade and transactions with Brazil.

B2Brazil.com.br é um mercado global B2B promover o comércio e as transações com o Brasil.

The state of Brazil logistics for Importers and Exporters

Brazil is the world’s 7th largest economy in GDP terms and one its fastest growing. However, high logistics costs could impact growth. The costs are largely the result of regional differences in infrastructure, an underdeveloped rail network and high port fees.

Brazil’s disparate geography of rain forests in the lowlands of the north, plateaus and mountains in the south and the Andes in the west, affect its transport infrastructure.  While the southwest and south have several well-built highways, in the (Amazon) north there is limited infrastructure. logistics

The Brazilian highway system is the main means of transport, handling 60 percent of total transport volume.  Rail transport handles 25% of logistics volume, but lacks quality and density, as it is mostly concentrated in the Southeast.  Even though Brazil has 40.000 kilometers of potentially navigable waterways, this transportation method only corresponds to 13% of the country’s logistic sector. Brazilian ports charge higher fees than most other ports worldwide, and have trouble keeping up with demands.  The industry has become extensively consolidated, fueled by large, multinational and primarily European logistics service providers. As a result of the increased competition, domestic carriers have evolved into logistics service providers

While Brazil’s economy and exports have grown dramatically in the last 10 years, disproportionately high logistics costs may adversely impact this growth.  While production grows it is threatened by the lack of infrastructure regarding the transportation system in the country. For example, Brazilian soybean and corn production will continue to expand over the next 10 years, but only as fast as logistics allow.  Ports are already stretched to the limit in the immediate post-harvest period. The waiting time to load soybeans at Paranagua port in March 2013 was reported to be 57 days. 

The main problem has always been that improvements in logistics always come after production.  On the positive note, not having an efficient system may allow for the implementation for new logistics infrastructure in the coming years, particularly with major global events putting a focus on Brazil.  Integrated logistics solutions can be seen in Brazil. But the efficient and cost-effective implementation of these solutions is being hindered by bureaucratic hurdles.

The main problem has always been that improvements in logistics always come after production.  On the positive note, not having an efficient system may allow for the implementation for new logistics infrastructure in the coming years, particularly with major global events putting a focus on Brazil.  Integrated logistics solutions can be seen in Brazil.  But the efficient and cost-effective implementation of these solutions is being hindered by bureaucratic hurdles.

That said, the Internet has facilitated finding and comparing national and international logistics solutions providers.  Through B2B portals like B2Brazil.com, one can find the right logistics solution to import and export products, from cargo, to train to highway transport.  Logistics providers include  Transportes Cordenonsi, a major highway transport company through the Mercosur countries.  B2Brazil.com also promotes trade service providers like customs brokers, trade agents, storage providers, and so forth, providing a turn-key solution for importers and exporters alike.

If you are looking for importers, exporters, suppliers or distributors, please let us know filling up the form below:

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