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Sea freight prices between Asia and Brazil have again risen sharply, causing concern in industries dependent on inputs brought by ships

Written by Roberta Souza
Published 22/07/2022 às 14:49
Updated 23/07/2022 às 13:41
Shipping, Brazil, ships
Photo: reproduction pixabay.com

The value of sea freight between Asia and Brazil increased again this July, which may affect industries that rely on this type of transport

The cost of freight maritime costs for imports between Asia and Brazil, essential for the supply of components for industries, increased in July. The average monthly value, from Asia to Brazil, is US$ 10.550 per 40-foot container, those that have dimensions of 12 by 2,5 meters, an increase of about 30,2% compared to the average price for the month of June. The cost of freight has been increasing since May, returning to the levels of the second half of 2021, the height of the global logistics crisis that began in the second half of 2020. The average price of sea freight between Asia and Brazil this month is 5,1 ,6,6 to 2020 times greater than the values ​​of XNUMX, before the pandemic.

The recent increase in freight values, according to the CNI (National Confederation of Industry), conveys that the world's logistical bottlenecks may take even longer to dissolve. For the entity's infrastructure specialist, Matheus de Castro, the value of US$ 10 thousand per container between Asia and Brazil may be the new common cost of international trade logistics.

Lockdows in Asia, China, “stopped” sea freight to Brazil and other countries

According to the CNI specialist, the worst part in the maritime freight sector passed with the “lockdowns” in China, but this was not enough to alleviate the world’s logistical bottlenecks, in theory, in Castro’s assessment, due to the congestion of the US ports. The closure of West Coast terminals caused operators to transfer a portion of freight flows to the East Coast, which spread port closures rather than solving the problem.

According to Fábio Pavani, manager of the São Paulo branch of Asia Shopping, specialist in foreign trade logistics, in addition to the increase in fuel and global bottlenecks, the cost of freight is defined in view of the demand for imports. Freight consumption in Brazil “continues to move”, he said. And, although the sector suffers from the blockage of global chains, driven by the “lockdowns” in China, in Asia, stocks of components in the oil industry ceased. Brazil. “The demand for transport, whether by sea or air, has increased,” said Pavani.

What is ocean freight and what are its types

The most common ways to move around and ensure the safety of goods are by hiring sea freight, a common means of transporting logistics in Brazil, Asia and others. 

The reason why ocean freight is so widely used, including Brazil and Asia, is due to the fact that ships allow for a range of possibilities for sizes and volumes of shipments. containers that can be transported by the companies that provide this service.

The existing types for this type of freight are FCL (Full Container Load) and LCL (Less Container Load).

FCL (Full Container Load) sea freight is when the consumer, whether importer or exporter, uses the container 100% loaded, using all available space. This modality is the best option and generally, equipment of 20 and 40 feet is transported, with dry cargo.

Sea freight of the LCL type (Less Container Load) is the most common type of freight when the transported cargo does not occupy the entire container, giving the possibility for the importer or exporter to pay a low cost of sea freight, since he can do the container sharing. 

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Roberta Souza

Petroleum Engineer, postgraduate in Commissioning of Industrial Units, specialist in Industrial Corrosion. Get in touch to suggest an agenda, advertise job vacancies or advertise on our portal. We do not receive resumes

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