Road transport of wheat grows 57% in the 1st quarter, points out Fretebras

Data from Fretebras, - from the Frete.com Group - the largest road freight transport platform in Latin America, shows a 57% growth in freight volume in the 1st quarter of this year compared to the same period in 2022. The movement was driven by largely through Rio Grande do Sul, where expansion reached 70%. In relation to the average freight price per ton of wheat, the platform also recorded an increase of 25% in the period.

“This increase in production reflects the increase in the volume of wheat freight on our platform. With the need to transport a greater quantity of product, agricultural transport companies are looking for digital solutions such as Fretebras to hire truck drivers who transport wheat more quickly and effectively and guarantee the flow of cargo”, says Bruno Hacad, Director of Operations from Fretebras.

Hacad explains that the price of freight is impacted by supply and demand and when there is an increase in the volume of cargo it is natural for the price of freight to also rise. Therefore, using freight platforms, such as Fretebras, is a good way to generate more savings and ensure that carriers comply with contracts.  

Another factor that influences freight prices is diesel. But, with the recent drops, the input's value is only 5% higher in the 1st quarter of this year compared to the same period last year, while the price of wheat freight per ton increased by 25%, five times more. This reinforces the significant increase in supply versus demand for the product and brings good news for drivers, who can now work with better margins on the freight they carry out.

As for the producing states, Rio Grande do Sul had its largest harvest. The wheat cultivated area was the largest in 42 years, according to Emater. Paraná suffered from excessive rainfall and was surpassed in production volume by Rio Grande do Sul. Even so, Brazil achieved 24% greater production compared to the previous season, according to Embrapa Trigo.

This increase is directly reflected in road freight transport, as a greater volume of truck drivers is needed to transport production. In addition to the 70% growth in the volume of wheat freight on the Fretebras platform, Rio Grande do Sul increased its representation of the product by 7 pp, demonstrating the State's leading role in cereal production.

“The year started well for wheat on our platform, with a lot of freight demand still resulting from the record production of the previous harvest, with stocks and the need for disposal. For the next harvest we expect similar results, with the strength of Rio Grande do Sul and more prominence of Paraná”, says Hacad.

According to consultancy StoneX, projections for the next wheat harvest are 11,3 million tons produced, around 3% more compared to last season.