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Two terms are essential in any conversation with executives in the Brazilian logistics sector: challenging and costly. They are intrinsic. We are talking about a lack of adequate infrastructure, lack of investment and exacerbated bureaucracy. A study by the Institute of Logistics and Supply Chain (Ilos) estimates that Brazil's logistics costs reached 13,3% of the Gross Domestic Product (GDP) in 2022. Something around R$1,32 trillion, from R$9,9 trillion calculated by IBGE. These expenses have only increased. In 2020 it was 12,6% and in 2017, 12,3%. In developed countries, such as the United States, it is around 6% to 7%. In the World Competitiveness Yearbook, prepared by the IMD World Competitiveness Center (International Institute for Management Development), Switzerland, Brazil ranked 59th among 63 economies analyzed, behind countries such as Botswana (58), Kazakhstan (43) and Cyprus ( 40), for example.
