Source: Valor Econômico
According to Maria Fernanda Hijjar, executive partner of the Institute of Logistics and Supply Chain (Ilos), instability affects global logistics dynamics. "Routes are altered, queues form at ports, terminals may close, and insurance premiums increase, which raises the total logistics cost," she states. In some cases, she adds, companies have resorted to land transport as an alternative, which increases costs and slows down operations.
Hijjar explains that, in Brazil, the impact is aggravated by the strong dependence on waterway transport, which accounts for about 97% of the volume moved in exports and imports. She highlights that supply chains such as meat, corn, and fertilizer imports are among the most exposed, due to their connection with conflict zones in the Middle East. “Our logistics costs relative to GDP are high because of deficient transport infrastructure and high interest rates. There is a lack of more efficient modes of transport, such as rail and waterways, which leads to more intensive use of road transport, which is more expensive,” she states.
