Agribusiness road freight volume grows 46,9% in 2021, reveals FreteBras

FreteBras, the largest online freight transport platform in South America, has just launched the 6th edition of the “FreteBras Report - Road Freight Transport”, based on the analysis of 8 million freight shipments published over the course of last year. According to the study, in 2021, agribusiness freight increased by 46,9% compared to 2020, which demonstrates that the sector is increasingly digitalized when it comes to grain transportation.

The report reveals that 36,6% of cargo registered on the FreteBras platform in 2021 came from agribusiness, which handled around R＄ 23 billion in freight in the period. The states that concentrated the majority of trips to serve the segment were São Paulo (15%), Rio Grande do Sul (14,7%), Paraná (13,5%) and Minas Gerais (10,6%). The most transported products were fertilizers (31,5%), corn (10,9%) and soybeans (9,2%).

“We know that agribusiness is one of Brazil’s main strengths. The volume of freight followed the sector's great representation in our economy. For the 2021/22 harvest, Conab (National Supply Company) estimated, last year, an increase of 3,6% in the cultivated area and 14,2% in grain production. Therefore, producers imported millions of tons of fertilizers to meet this demand. We can see the impact of this movement on our platform”, declares Bruno Hacad, Operations director at FreteBras.

During 2021, the South and Southeast regions drove the growth in total freight volume at FreteBras. In the South, there was an increase of 38,7%. In the Southeast, the increase was 27,8%. This was due to the large number of shipments registered in these regions, which demonstrates the high representation that both have in the total shipments registered on the platform.

Digitization of agriculture led to freight growth

The pandemic accelerated the digitalization of several sectors and mainly impacted micro and small companies, which found it difficult to withstand the changes imposed by the new normal. In the Transport and Logistics segment, however, the situation was different. This transformation had a positive effect on the increase in freight volume in 2021.

In relation to 2020, there was a 62% increase in new registrations of micro and small companies on the FreteBras platform. By not having the constraint of their own fleet, these businesses were able to adapt quickly by digitizing freight.

“Last year marked an intense transformation that began in 2020. This affected several companies, which were forced to look for digital solutions, like our platform, to expand their markets and locations, in addition to saving time and expenses. Micro and small carriers found it easier to adapt to this new scenario due to their size and lower investment in fixed assets, such as their own fleets. All this movement was directly reflected in our report. The growth in new registrations of these companies was quite significant and helped to move the freight market even further”, believes Hacad.

Movement in ports

According to the Brazilian Waterway Transport Association (ANTAQ), last year alone, from January to October, more than 1 billion tons of cargo were handled through Brazilian ports, which had a direct impact on the transportation of cargo along our roads. To understand this impact, the FreteBras report analyzed freight movement at the ports of Paranaguá-PR, Rio Grande-RS and Santos-SP, which together represent around a quarter of all cargo entering and leaving Brazil.

Last year, the port of Paranaguá was one of the main points of origin for the import of fertilizers. The FreteBras survey reveals that the freight volume of these products, originating in Paranaguá, increased by 59,5% compared to the previous year. As for exports, soybeans were the main item shipped through the port of Paraná and recorded a 23% increase in freight volume on the FreteBras platform.

At the port of Rio Grande, the most imported products were also fertilizers. There, in fact, was where these items recorded the greatest growth. Fertilizer freight increased by 168,8%, from around 20,4 thousand, between January and October 2020, to 54,8 thousand in the same period in 2021. In the same period of time, soybean production, which highlights in Rio Grande do Sul, was also reflected on the platform. Grain freight destined for the port of Rio Grande do Sul recorded an increase of 9%.

In Santos, freight for fertilizers - the second most imported category of products in the region - increased by 124,8%, when comparing the periods between January and October 2020 and 2021. This growth occurred to meet the expectation of growth in agricultural production of the 2021/22 harvest. Soybean and sugar freight for export also stood out in the period, with increases of 76,9% and 17,6%, respectively.

The full report can be accessed here.