Agribusiness road freight volume grows 37,4% in the third quarter, reveals FreteBras

FreteBras, an online freight transportation platform in South America, has just launched the 5th edition of the “FreteBras Report -- Road Freight Transport in Brazil”, based on the analysis of 2,5 million freight shipments during the third quarter 2021. According to the study, agribusiness freight increased by 37,4% in the period, compared to the same months last year, which demonstrates that agribusiness is increasingly digitalized, also with regard to internal and external movements of grains.

Agribusiness represented 39,7% of cargo registered on the FreteBras platform in the third quarter of 2021 and around R＄7,8 billion was distributed in freight to serve the sector. The states that concentrated most of the segment's freight were São Paulo (15%), Rio Grande do Sul (13,6%), Paraná (12,8%) and Minas Gerais (12,4%). The most transported products were fertilizers (36,7%), corn (11,6%) and soybeans (6,7%). Compared to the second quarter of this year, the increase in freight volume was 46,7%.

“The volume of freight followed the growth of agribusiness, which, according to estimates from the National Supply Company (Conab), will increase in the 2021/22 harvest compared to the previous one. The forecast is for an increase of 3,6% in cultivated area and 14,2% in grain production next year, compared to 2021. To meet this demand for growth, the sector has already started importing millions of tons of fertilizers and we see the impact of this movement on our platform”, declares Bruno Hacad, Operations director at FreteBras.

Agro dominates movement in the main Brazilian ports

During the third quarter of 2021, the FreteBras study revealed highlights of freight movement in three large Brazilian ports: Paranaguá-PR, Rio Grande-RS and Santos-SP.

The port of Paranaguá was one of the main points of origin for the import of fertilizers. The study reveals that the freight volume of these products, originating in Paranaguá, increased by 41,6% compared to the same period last year. On the other hand, soybeans recorded a 12,3% drop in exports from this location and the impact was also felt in the volume of oilseed freight destined for Paranaguá. The reduction was 24% in freight volume, compared to the third quarter of 2020, on the FreteBras platform.

At the port of Rio Grande, the most imported products were also fertilizers, and the impact was also recorded in the volume of freight for this type of product, which increased by 88,9% in the period. The state of Rio Grande do Sul has consolidated itself as one of the largest soybean producers in the country, which could be seen in exports of the grain through the port of Rio Grande do Sul, which registered an increase of 85% compared to the third quarter of 2020. At FreteBras, soybean freight destined for the port of Rio Grande increased significantly by 139% compared to the same period last year.

At the port of Santos, freight of fertilizers, the second most imported product there, increased by 165,2% in the third quarter of 2021, compared to the same period last year, precisely to meet the expectation of an increase in production agriculture for the 2021/22 harvest. Soybean and sugar freight destined for Baixada Santos, for export, also stood out, with increases of 55,7% and 94,5%, respectively, in the period.

Growth driven by digitalization

The volume of road freight in Brazil increased by 35% between July and September this year, when compared to the same period last year. The growth was driven by carriers' confidence in the digitalization of freight, which has helped companies reduce transport costs by up to 23%, attacking new markets and achieving greater agility in processes.

“Companies were forced to reinvent themselves and found digital solutions, like our platform, a way to control expenses, serve new markets and locations, without losing delivery quality, in addition to saving time. Micro and small companies were able to contract more freight as they adapted better to market needs, due to their size and lower investment in fixed assets, such as their own fleets. This contributed to their increase of 200% during this period. This scenario directly impacted the results of our report”, believes Hacad.

According to the survey, the third quarter of 2021 was marked by an intense battle for economic recovery, as inflation was close to double digits, in addition to the rising interest rate, reduction in the population's income, rise in the dollar and difficulty in access to credit.

“Despite the scenario of uncertainty and economic challenge, we see that the road freight market continues to grow. Brazil is extremely dependent on road transport, which is why we see an increase every quarter as the country finds ways to recover economically”, highlights FreteBras Operations Director, Bruno Hacad.

The South and Southeast regions drove growth.

In the South, the increase in freight volume was 27%, while in the Southeast, the volume rose 10%. This was due to the large number of shipments registered in these regions, demonstrating the representation that both have in the total shipments registered on the platform.

*The full report can be accessed here.