Cabotage expands in Brazil’s Northeast with new routes and lower costs

Lower transport costs and expanded maritime schedules have boosted cabotage in Brazil’s Northeast. According to operators, there is growing adoption of this transportation mode, especially at the ports of Pecém (CE) and Suape (PE) — two of the region’s most important hubs — where 82% and 72% of containers handled, respectively, are moved by cabotage, according to the National Waterway Transport Agency (Antaq).

There is still room for growth. A survey by the National Confederation of Industry (CNI) shows that less than one-third of industries in the Northeast use this mode. Even so, driven by the region’s geographic position, the transport of high-value-added goods (such as electronics and manufactured products) and consumer goods (food, beverages, and clothing) via coastal shipping rose from 8.94 million tonnes in 2021 to just over 10 million tonnes in 2024.

Luis Fernando Resano, executive director of the Brazilian Association of Cabotage Shipowners (Abac), notes that the increase is also due to lower costs for distances greater than 1,500 km. The mode is considered safer, with an almost zero theft rate, and offers door-to-door service.

“When assessing the economic impact of cabotage, it’s important to consider that cost reduction is not limited to freight rates, but to the efficiency generated by the maritime model,” says Felipe Gurgel, commercial director at Log-In Logística Integrada, which operates in the region. According to him, the mode provides gains in predictability, security, and operational control, with lower cargo damage rates, reduced logistical risks, and, consequently, lower insurance costs.

Log-In recorded a 36% increase in cargo volumes destined for Northeastern ports between 2021 and 2024, reflecting stronger port infrastructure and greater local business adoption. Since 2023, about 68.5% of the company’s cabotage cargo has originated from or been destined for ports in the region.

Challenges remain. According to the CNI, local entrepreneurs cite geographic incompatibility with existing routes (45%), lack of regular services (39%), long transit times (15%), and distance between factories and ports (15%). Other issues include insufficient port infrastructure, poor road conditions, and limited multimodal integration, which raise costs and travel times.

Log-In recently launched a new route in Suape, expanding its service capacity. Meanwhile, Aliança Navegação & Logística expects increased cargo handling at the port with the launch of APM Terminals Suape — Latin America’s first fully electrified port — scheduled to begin operations in the second half of 2026. Suape reached a record in the first seven months of this year, with just over 389,000 TEUs handled.

“With a privileged location, modernized and electrified infrastructure, cutting-edge technology, and sustainable solutions, the terminal will be a key point for integrating production chains in the Northeast,” says José Roberto Duque, commercial director at Aliança Navegação & Logística. “For cabotage to grow, it’s essential to invest in infrastructure, expand routes, reduce costs and bureaucracy, and strengthen technological and logistical integration.”

Duque notes that the technological modernization of terminals is progressing unevenly, with few ports being fully automated or electrified. Gurgel, from Log-In, also points out the high operating costs in regional ports. On the other hand, he says the federal government’s BR do Mar program has contributed to expanding operations — the company has increased its capacity offered in the Northeast by more than 75% since the program’s launch.

Source: Valor Econômico

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