Cabotage Gains Ground in the Market with the Integration of Maritime and Land Transport as a Cost-Effective Logistics Option for Companies of All Sizes

Maritime Transport Enables Cost Reduction in Logistics Due to Fewer Accidents and Cargo Security, as Well as Low Environmental Impact

The logistics matrices in Brazil are evolving, and navigation is gaining more representation. With an expanding market, cabotage is growing at an average of double digits per year. This happens because Brazil is a country with a large number of rivers and an extensive coastline, with more than 14 port options served by cabotage. Additionally, about 80% of the Brazilian population and a large part of the industries are located within 200 km of the approximately 8,500 kilometers of coastal shoreline.

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With more competitive prices, especially for distances starting from 1,200 km, cabotage proves to be a logistics option advantageous for companies of all sizes.

“In addition to enabling cost reduction in logistics due to fewer accidents and cargo security, transport also has a low environmental impact. When compared to other modes, it emits up to five times less CO2, the main responsible for the greenhouse effect,” stresses José Roberto Duque, CCO of Mercosul Line, a subsidiary of CMA CGM Group, a global leader in shipping and logistics that offers cabotage and integrated logistics services. “We are here to show customers the benefits and facilities of cabotage and how to utilize it to enhance their companies’ logistics results. Everyone is very welcome,” he adds.

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Integrated Logistics

With three lines of operation – BRACO, PLATA, and NEXCO, Mercosul Line serves over 1,000 cities, connecting regions from north to south of Brazil and also to Argentina and Uruguay. “As a success example, it is important to highlight the market in Manaus and its importance to the continent. This is where cabotage rapidly solidified and where we are the main local suppliers as well,” states Duque.

The way Mercosul Line enables the diversification of companies’ logistics chains generates gains by reducing risks for cargo and associated costs. “Today, most of our customers purchase the service with one door involved (origin/destination). The client seeks integrated logistics services (land + maritime), from the seller’s plant/factory to the buyer’s location. The fact that we have other companies in the CMA CGM Group with many years of experience in the field enables us to offer a wide range of customized options from end to end to our clients, and to provide new logistics and transportation solutions that are more efficient and increasingly respect the needs of both people and the planet, being at the heart of the CMA CGM Group’s ambition, represented by BETTER WAYS, our new signature,” says Duque.

Do You Know What Kind of Goods Are Transported by Container Ships During Cabotage? Find Out Now!

Cabotage, which is the transport by ships between seaports of the same country, is a competitive alternative for the industrial sector that needs to ship its production and reduce container logistics costs.

According to Angelo Baroncini, CEO of Norsul Shipping Company, the adoption of cabotage in the country is still timid.

“Today, cabotage transport accounts for about 10% to 12% of the transport matrix,” he explains. For him, a country with proportions like Brazil should have a better distribution in the transport matrix among maritime, rail, and road transport.

The Ports Administration of Paranaguá and Antonina (APPA) released official statistical data regarding the movement of goods in the first half of this year.

Corn exports have been standing out, mainly through cabotage navigation – transport between domestic ports. There are 39,432 tons accumulated this year (January to July 17), compared to 19,000 tons in the same period of 2002.

A large part of cabotage exports is destined for the northeastern states of Brazil. Due to lower tariffs, maritime transport of goods to northeastern states replaces road transport when it comes to long distances, thus justifying the movement of cargo by cabotage navigation.