Freight price per kilometer traveled ends August at R$6,36

According to the Edenred Repom Freight Index (IFR), the average freight price per kilometer traveled closed the month of August at R$6,36, an increase of 0,47% compared to July. The change appears after the update of the minimum freight rates for road freight transport, carried out by the National Land Transport Agency (ANTT) in mid-July.

“The adjustment of the table did not have a major impact on the average freight price in the closed month of July – which varied by 0,31% – but in August we already see a greater variation, although the increase was still moderate, unlike what was expected”, he highlights. Vinicios Fernandes (pictured), Director of Edenred Repom. 

Among the reasons for the increase in the accumulated total for the month is the increase in the average price of diesel in the country, since it represents around 40% of the freight cost. According to data from the Edenred Ticket Log Price Index (IPTL), the common type of fuel was sold in August at an average price of R$6,10, after a 1% increase, while S-10 diesel was found at R$6,18, after a 0,16% increase compared to July. 

Furthermore, with the water crisis, according to the National Supply Company (Conab), Brazilian grain production in 2023/24 is estimated at 298,6 million, a decrease of 21,2 million tons, or 6,6%, when compared to the volume of the previous cycle (2022/23). And, the forecast for the month of August showed a negative variation of 0,2% in relation to the survey of the previous month, according to Conab, this decrease is due to the advancement or completion of harvesting operations of the main crops.

“The increase in freight prices has been recorded since May of this year and may continue in the coming months. The reduction in grains produced may result in a smaller amount of cargo to be transported, changes in the efficiency of vehicles and routes, which potentially will not operate at maximum capacity and affect the supply chain related to sectors linked to grain production, which may reflect on freight prices,” he concludes.