Brazil’s cabotage grows 18% between June 2018 and April 2019

According to the consulting firm Ilos, between June 2018 and April 2019, the volume of containerized cargo carried by cabotage increased by 18.2%. If we consider only the first quarter of this year, the percentage was even higher, at 21%.

Since 8.8m tons were transported by cabotage between 2017 and 2018, between last year and this year the volume already reaches 10m.

One of the factors that contributed to the increase in cabotage was the government-created freight table designed to benefit truck drivers, although it did not have the expected effect yet contributed to the diversification of logistics modes in the country.

“Cabotage represents 11% of the transport matrix in Brazil. In the sector, the competition takes place directly with the road, which really is very representative here and well outside international standards. In fact, cabotage and railroads are the most appropriate options for a certain movement profile: long-haul and larger-volume cargo near ports. Even then, there is still a large volume absorbed by the highways,” says the director of the Market Intelligence department of ​​the Ilos Institute, Maria Fernanda Hijjar.

For the president of the Brazilian Association of Cabotage Shipowners (Abac), Cleber Cordeiro, although there are legislative and economic impediments, cabotage has grown on average 12% per year in the last decade, even with a stagnant national economy: “In fact, there is a much larger space for cabotage to grow. This growth is related to a number of factors that are within our industry, of shipping and others outside. There must be about 200,000 stations in the country today, and we, in cabotage, are 10 companies – that not only compete with each other, but with these other 200,000”, he explains.

Source: JC

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