Brado envisions growing soymeal transport in containers by 20% in 2023

Brazil’s Brado Logística, a subsidiary of Rumo, hopes to increase the movement of soybean meal in containers by 20% this year, given better freight conditions for transport, high production levels, and heated demand for export, the company told Reuters on Feb 17.

With this, the company expects to elevate the mark to 3 thousand containers, which means a volume of around 85 thousand tonnes of soymeal, estimated Brado’s Executive Commercial Manager, Vinicius Cordeiro.

According to the Brado executive, only 5% of the soymeal exported by Brazil is shipped in container ships.

“The containerized product is less exposed and arrives sealed. It’s a solution that ensures the cargo arrives in the same condition it left the terminal,” he said.

He pointed out that bulk carriers have an average capacity of 60,000 tonnes, which only large buyers can absorb.

“That is why we have developed this solution at Brado to serve customers who need to buy the meal in smaller doses.”

Soymeal can be transported in bulk or big bags, which usually carry higher value-added items and better-quality cargo.

According to the company, the main destinations for the soymeal exported in containers are countries in Southeast Asia, such as Vietnam and Indonesia, as well as China and South America, such as Chile and Colombia.

In February, more than 150 containers with the product should be handled at Brado’s terminal in Rondonópolis bound for the port of Santos (SP) by rail. In the same period last year, when the soybean harvest was at its peak, there were 242 containers.

“Soymeal is a low value-added product and is usually transported in bulk carriers, which demand a large volume of sales. On the other hand, containers are used for smaller sales, and the increase in maritime freight in container ships during the pandemic significantly impacted this market. Now, freight rates are falling, creating new opportunities for exports in this mode,” he said.

“Furthermore, Brazil’s record soybean harvest opens up a variety of opportunities for soybean meal exports, which have Argentina as a direct competitor, which suffered heavily in its last harvest with a significant drop in production,” he added.

Brazil should produce a record 40.2 million tonnes of soymeal in 2023 compared to 38.6 million last year, according to data from the Brazilian Association of Vegetable Oil Industries (Abiove). For the group, the oilseed crop is estimated at a historical maximum of 152.6 million tonnes.

Meal exports were projected by Abiove at 20 million tonnes, below the 20.36 million shipped in the previous year, when there is also firm domestic demand for the commodity for the animal feed sector.

Source: Money Times

To read the original report, see: https://www.moneytimes.com.br/brado-quer-elevar-em-20-movimentacao-de-farelo-de-soja-por-conteiner-em-2023/

Sharing is caring!