Category Intelligence on Truck Types Brazil covers the following
Brazil's cargo transportation is significantly dependent on roads. Trucks and trailers account for more than 60 percent of all goods moved in the country. The second most important mode is rail, which is responsible for another 21 percent.
Brazil's transportation costs are high in the country and the government has allocated funds to improve the road infrastructure to bring down the freight costs from 12 percent which is way higher than the logistics cost of developed countries.
Freight Transport Modal Split
Trucking demand and use of open trucks in Brazil market
In the current scenario shippers with larger volumes can look into larger truck with greater than 6 axles to optimize the freight volumes and also freight rates.
Minimum freight rate law increased the freight rates up to ~20 to 25 percent which impacted the complete supply demand balance and the negotiation power for shippers is expected to be low.
The carrier profit margins are expected to improve due to the new law and the shippers may find difficulty to negotiate with carriers on the profit margin.
Operating cost of open truck is less in comparison to closed truck but transporting FMCG related goods through open trucks can lead to goods damage and most of the open trucks have bad trailer floor which results in difficult forklift operations during loading and unloading.
Majority of the carriers operating open trucks are experienced in handling non-damageable materials like grains, soya and steel hence shippers are advised to engage with open truck carrier having experience in moving FMCG related goods.
Complimentary 12-month access to Beroe LiVE
COVID-19: Assess impact on your suppliers and ensure business continuity with Beroe’s WIRE
(World Instant Risk Exposure)