For some people, the term cabotage is still unknown. In fact, it is not a word that is part of the daily lives of most Brazilians. And the fact that it does not have the “via” ending does not allow the assumption that such term refers to a mode of transport.
In short, cabotage configures the maritime transport of products along the coast. It is a modal established in our country for decades, and carried out by companies known as shipowners, which own, charter and operate ships. Brazil has almost 8 km of coastline and 80% of the population lives within 200 km of the shore. This explains how our country has a strong vocation for modal.
In Brazil, cabotage represents 11% of the Brazilian transport matrix, well below some important countries and regions such as Japan (44%), European Union (32%) and China (31%). Of these 11%, more than half is related to the movement of oil and derivatives. If we really want to solve the problem of high dependence on road transport, Brazil needs to develop state policies to accelerate the growth of alternative modes. Much is said about the railway modal, but it is cabotage that presents the highest return on investment, given the lack of investment in roads. The imbalance in the Transport Matrix can cause distortions and problems, such as shortages and the large losses that occurred in 2018 due to the truck drivers' strike.
In recent years, cabotage has grown a lot, especially container cabotage, which has great potential for removing cargo from the highways. Between 2010 and 2018, container cabotage grew, on average, 12,5% per year in Brazil. For the country to resume growth and be in line with the new government's goals, it will be necessary to develop mechanisms for this growth to be accelerated.
Figure 1 – Growth of container cabotage in recent years.
Source: ILOS/ANTAQ. Note: Volume estimated for Dec/2018.
In addition to balancing the Transport Matrix and ensuring the country's supply, cabotage provides a series of other benefits. It brings positive impacts in environmental, social, economic terms and in terms of national sovereignty. Environmentally, it is a more sustainable modal, as it emits four times less Greenhouse Gases than the road modal.
Cabotage also brings benefits in social terms, as trucks are removed from the highways for long-distance transport, and the number of accidents and deaths in traffic is reduced. In economic terms, cabotage is advantageous, since road transport is, on average, 20% more expensive than maritime transport along the coast, in addition to lower risks of accidents and theft. Finally, in terms of national sovereignty, it brings benefits since Brazilian legislation defines that cabotage is only carried out by Empresa Brasileira de Navegação, which guarantees a bond and commitment of the Brazilian merchant navy with the country.
The new government will face major challenges to make the country grow and develop again. The spending ceiling, the limitations for new investments and the commitments that the country has, such as the Paris Agreement and the National Plan for the Reduction of Deaths and Injuries in Traffic point to the development of cabotage as an excellent alternative. It is up to the government to develop mechanisms and measures to meet the desires of shipping companies and shippers.
References:
Government launches plan with goals to reduce traffic deaths by half
Henrique Alvarenga
He has been working in consultancy for 7 years, with experience in more than 20 Demand Planning and S&OP projects, Logistics Network Design, Logistics Master Plan, Inventory Policies, Operations Strategy and Market Intelligence
