Antaq discusses problems in handling cargo in Brazilian ports, due to lack of containers and high costs with international freight

Although Brazilian ports have a large deficit of containers, the main problem surrounding cargo handling operations in Brazil, currently, are the high costs with international freight and the lack of predictability in the market, according to Antaq

The National Waterway Transport Agency, also known as Antaq, commented last Tuesday (26/04) on the issues that hinder cargo handling logistics in Brazil and stated that the high costs of international freight and the lack of market predictability are the main problems of Brazilian ports. Contrary to the lack of containers in the country, as many port complexes end up thinking.

Lack of containers in Brazil is not the main problem of Brazilian ports and Antaq highlights the high costs that are present in the international freight chain

One of the most common discussions within the Brazilian port sector in recent months is the lack of containers in the country and how this problem has been affecting the cargo handling logistics chain in the domestic market. However, Antaq opened a discussion on other more important issues in the current port segment and stated that that's not the main reason of Brazilian exports are presenting a drop during the last few months. 

Thus, Antaq emphasizes the increase in international freight and the lack of predictability for loading and unloading cargo in some regions as the main challenges faced by the domestic market. The agency also pointed out, in an official note, that “In exports, cargo has been accumulating in ports waiting for shipment. As for imports, the national production chain has suffered from the lack of raw materials that fail to arrive in the country on schedule”.

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In addition, another problem very present in recent months that has been contributing to these results in cargo handling logistics in Brazilian ports is the closure of ports as a result of the covid-19 pandemic and the congestion of ships abroad directly affect Brazilian ports because shipping lines are highly connected. However, this is an issue that has been resolved over the last year and does not impact the country as strongly as the high costs of international freight, for example, and the lack of containers in Brazil. 

Container crisis that affects Brazil is motivated by the international market and cannot be taxed as a matter of purely internal logistics, according to Antaq

Still talking about the main issue in the port sector currently in Brazil, the high cost of international freight, Antaq commented that a large part of this problem has been caused by the container crisis, but that this is a matter of international market. Thus, this lack of equipment was motivated by the high demand in large exporting ports, such as Asia, the United States and Europe, which are more profitable compared to other countries, such as Brazil.

In addition, these countries still have a serious logistical issue, which is the lack of drivers for cargo transport operations within their own nations, which also impacts the final logistics of cargo movement between international ports. As a result, exporters are penalized with delays in product delivery, high freight prices and charges for the length of stay of cargo in ports, causing a chain problem in ports all over the world. 

Therefore, Antaq reassures the Brazilian port sector regarding the problems with containers and is willing to continue striving to reduce the high costs of international freight over the next few months in the country.