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Cabotage and cost reduction in logistics

In times of crisis, the search for cost reduction is even greater.

As published in Valor Econômico today, companies seek in cabotage solutions to reduce their costs.

ILOS studies point out that, for each container currently in cabotage, there are still another 6,5 with the potential to switch from road to sea.

This impact would be beneficial, not only for the companies' costs (on average, cabotage is about 25% to 30% cheaper than road transport), but also for reducing the emission of gases that make up the greenhouse effect, since the cabotage is less polluting.

What lacks attention on the part of cabotage shipowners is a greater focus on road ends. According to customers, this is the Achilles heel of modal.

Many companies are considering going ahead with cabotage for deliveries that correspond to sales, but are unable to move in that direction due to the low level of service at the road end of the final delivery.

Anyway, this is a type of transport that is here to stay, not by chance, this modal has been growing in years of crisis.

https://ilos.com.br

Monica Barros is an Executive Partner at ILOS. She has over 20 years of experience in Logistics, having worked for companies such as Shell, Ambev, and White Martins. In consulting, she has participated in various types of projects, including Strategic Planning, Logistics Network Development, Transportation Management, and Supply and Demand Identification.

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