The March 2016 cover story of Valor Setorial Logística talks about the transfer of responsibility for transport costs to the customer. The substitution of CIF for FOB is one more of the resources that some companies have adopted to ease the burden of logistical costs in times of economic downturn.
This initiative may even alleviate costs for the link with greater bargaining power, but it does not reduce transport costs in the supply chain, which represent around 6,8% of GDP (in 2014 R$378 billion were spent on domestic cargo transport in Brazil according to ILOS research). This cost tends to increase, because of the increase the cost of diesel and the collective bargaining for drivers.
Much of the high spending on cargo transport is caused by the chronic inefficiency of the country's transport infrastructure, resulting from three decades of low investment in infrastructure. For Brazil to have a transport infrastructure equivalent to that of the United States, it would be necessary to invest almost R$1 trillion in investments in ports, highways and railways. This investment would be paid off in approximately 11 years, considering that Brazil would save R$91 billion a year if the Brazilian matrix was equivalent to the North American one. Investments and costs were scaled by ILOS and can be found at Overview of Logistics Costs in Brazil 2016.
While the investment does not come, one of the ways out is to look for alternative modes such as cabotage, typically used for long-distance movements along the country's coast. Despite the economic and environmental advantages, cabotage is far from having its potential fully exploited, as it lacks better integration with other modes, demand to enable greater frequency of ships and adequate operation in ports. However, even with the problems faced by cabotage, businessmen from different sectors seek to know the modal. According to Log-In's commercial director, Marcio Arany, quoted in the Price, companies are more receptive to testing cabotage, which can become a cost-effective alternative to road transport.
References
https://ilos.com.br/web/custo-de-transporte-no-brasil-a-conta-nao-fecha-em-2015/
https://ilos.com.br/web/cabotagem-e-reducao-de-custos/
https://ilos.com.br/web/cresce-a-migracao-das-rodovias-para-a-cabotagem/
https://ilos.com.br/web/analise-de-mercado/relatorios-de-pesquisa/custos-logisticos-no-brasil/
Logistics Sector Value - March/2016
Beatris Huber
https://ilos.com.brManaging Partner of ILOS, Master in Business Administration from COPPEAD/UFRJ with extension at the European Business School – EBS, Germany and Business Administration from UFRJ. More than 10 years of experience in training and consulting projects, focusing on Logistics and Supply Chain. In the training area, he developed company games and online courses and today teaches classes in Data Analysis, Inventory Management, Warehousing Management, in addition to applying business games such as Beer Game in open and in-company programs in companies from different segments, such as Coca -Cola, Nestlé, ThyssenKrupp, Votorantim, Carrefour, Mallinkrodt, Souza Cruz, Via Varejo, Monsanto, Itaú, Renner, Ipiranga, among others. In consultancy, he carried out projects such as Redefinition of the Logistics Network, Inventory Management, S&OP Process Structuring and Diagnosis of Storage and Transport Operations in companies such as Coca-Cola, Souza Cruz, Editora Moderna, Petrobras, Ducoco, Ultragaz, Silimed, Eudora among others.
