Agricultural transporters are betting on the digitalization of corn freight to contain costs, indicates Fretebras

Data from Fretebras, the largest online freight transport platform in Latin America, indicates an increase in the volume of safrinha corn freight in June. In the comparison between June 2021 and the same month in 2022, the number of loads transported grew by 103%. For Fretebras, this movement reveals that transporters of these grains are investing more in the digitalization of freight to contain costs, due to the constant rise in diesel prices.

Hiring autonomous truck drivers through digital platforms, such as Fretebras, has helped transport companies to alleviate high transport costs, achieving savings of 20% to 30%, when compared to transport carried out with their own fleet. The use of platforms helps companies to carry out a greater number of freights, with more profitability and efficiency.

“The big factor behind the digitalization of routes is the pressure of inflation on transport costs, driven mainly by the rise in diesel prices. The market has noticed that hiring freelancers using shipping apps, like ours, has generated more savings. Therefore, large sectors such as agriculture are betting on this type of solution”, says Bruno Hacad, operations director at Fretebras.

According to a survey carried out by Fretebras in its database, the state with the greatest representation in corn freight is Mato Grosso. There, freight for off-season corn rose 65,9% between June 2021 and June 2022. Next comes Mato Grosso do Sul, which represents 17% of product loads, where freight volume increased by 393%. The third state with the highest representation in freight volume is Paraná (14,1%), with a 438% increase in the number of loads transported.

The data is in line with forecasts from the National Supply Company (Conab), which estimates a record grain harvest in Brazil in 2022, with an estimated production of 271,28 million tons. The total corn harvest in 2021/22 is expected to reach 115,22 million tons, a volume 32,8% higher than the previous cycle.

Freight for safrinha corn has a significant price increase

Freight prices also increased, in the annual comparison (June 2021 versus June 2022), according to the Fretebras Freight Price Index (IFPF). Prices per kilometer per axle driven for off-season corn shipments increased by 25,16%, going from R＄ 0,85 to R＄ 1,06.

“The constant readjustments of diesel have had repercussions throughout the Road Freight Transport sector. The data we analyzed on our platform indicates that the increase in costs is already being passed on to freight prices, but still very slowly. Furthermore, the price of freight is extremely impacted by supply and demand, and when we have a very large jump in the volume of cargo, it is possible to see this upward correction in the price. Our expectation is that this trend will continue in the coming months”, adds Hacad.