Craft Creates Exclusive Service to Address Automotive Industry Demands

The flight of automotive companies from Germany to Eastern European nations has emerged as a notable trend in recent years. This transition is fueled by various factors, including lower labor expenses, tax incentives, and subsidies extended by local administrations, alongside the allure of new markets and enhanced proximity to regional clientele. To address the mounting demand for the transportation of vital inputs like parts, materials, and equipment, the Brazilian multinational Craft is launching a novel exclusive service for Less Container Load (LCL) imports from Eastern Europe to the Port of Santos in April.

Specializing in international cargo consolidation, Craft operates an exclusive service from Prague, Czech Republic, to Santos. This service caters to imports from Central European countries, encompassing Austria, Slovakia, Hungary, and the southern region of Poland. The newly introduced route, focusing on Eastern Europe, facilitates cargo transportation from Croatia, Bosnia, Montenegro, Albania, North Macedonia, Greece, Serbia, Bulgaria, Kosovo, and primarily Romania. Featuring a transit time of 21 days and biweekly frequency, cargo will be consolidated at the Port of Koper in Slovenia before embarking from the Port of Trieste in northeastern Italy.

The migration of companies formerly situated in Germany to Eastern Europe has garnered increased attention since the 2000s. These firms leverage the advantageous production costs, strategic geographic positioning, and access to burgeoning markets proffered by Eastern European nations. Romania, in particular, has witnessed substantial growth in its automotive industry, attracting the establishment of operations by prominent automakers and suppliers such as Daimler, Volkswagen, Ford, and Renault.

Vitor Moreira, LCL Imports & Exports Manager for Europe and Latin America, underscores the intricate interplay between industry and cargo transportation, which is shaped by market dynamics, transport expenses, infrastructure, and trade policies. He observes a notable uptick in the migration of automotive enterprises, prompting the necessity for a new exclusive route to the Port of Santos. This initiative aims to furnish tailored services to clientele while adapting to the evolving global landscape.

The efficacy and dependability of transportation infrastructure, encompassing highways, railways, and ports, profoundly influence companies’ selection of transportation routes and modalities. Brazil has made strides in enhancing its transportation sector. In early March of this year, the Ministry of Ports and Airports unveiled investments in the port sector and outlined forthcoming projects spanning the next three years, including auctions for ventures nationwide. These endeavors are poised to fortify the national logistical transport infrastructure, with an anticipated investment of R$ 14.5 billion in the port sector from 2024 to 2026.

Specifically for the Port of Santos, the Federal Government, in collaboration with the Ministry of Ports and Airports and the Santos Port Authority (APS), unveiled an investment blueprint totaling R$ 10.64 billion for the period spanning 2024 to 2028. This initiative encompasses federal funds, contributions from the São Paulo state government, and private investments. Silvio Costa Filho, Minister of Ports, heralds this as the most substantial planned investment volume earmarked for the maritime terminal.

Buoyed by economic expansion, Brazil has reclaimed its position among the world’s top ten economies, emerging as a prime destination for investors. Vitor Moreira underscores Craft’s commitment to serving as a trusted partner, perpetuating its successful trajectory, and fostering innovation in the logistics domain. The company boasts a team of specialists committed to continual evolution and maintains a specialized global network across various modes of transportation. Presently, Craft operates 100 direct maritime routes for LCL imports to Brazil, 26 exclusive services included, catering to loading and unloading operations. In addition to consolidated cargo services, Craft offers Full Container Load (FCL) operations and air freight services, comprehensively addressing the diverse logistical requisites of its clientele.

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