According to a new Rabobank report on agribusiness logistics in Brazil, 2013 is likely to be a “very difficult” year, as a result of pressure on Brazil’s transportation and export system.
The report, published by the bank’s food and agribusiness research and advisory team, shows that transportation costs in the country have risen from new legislation that affected the working hours of truck drivers, an increase in diesel prices and rising export volumes for major commodities. Over the next three to four months, the upward pressure on internal freight rates will be “intense,” owing to the expected large volumes of soybeans, corn and sugar. The study also mentioned that despite current construction, “nothing can be done” to alleviate the current pressure in the short term.
“The challenge for transport companies is maintaining the flow without having to acquire many more vehicles and find many more drivers,” said Andy Duff, a Rabobank analyst, in a written statement.