Brazil Soybean Transportation: Overview of Brazilian Soybean 2009 Transportation

摘要

During the past year, Brazilian soybean exporters benefited from a decline in transportation costs and increased exports. Lower farm prices were not enough to offset gains from large sale volumes and lower shipping costs. Transportation costs as a percentage of total landed costs declined 2-26 percent. Farm prices steadily increased throughout the year, but still remained 69 percent below 2008 levels. In 2009, transportation costs represented 28-33 percent of the total landed costs of shipping soybeans from Sorriso, North Mato Grosso (MT) to Shanghai and Hamburg through Santos and Paranagua, compared with 43-45 percent in 2006. The Brazilian soybean export transportation cost index decreased 10 percent in 2009, dropping almost to the levels of 2007 - $8.44/metric ton (mt). The cost of shipping a metric ton of soybeans 100 miles by truck decreased from $9.75 in 2008 to $8.74 in 2009. Truck rates recuperated during the 2nd and 3rd quarter, but still remained 17 percent below the peak of $11.15/mt/100 miles reached in the 3rd quarter 2008. Typically, the peak of Brazilian soybean exports has occurred in July, when almost two thirds of the year's soybeans are exported. Ocean rates declined in 2009 because of sluggish world trade volumes, reducing ship utilization ratios, cuts in bunker fuel surcharges as a result of the drop in oil prices, and carriers efforts to gain or hold market share. Ocean rates from the ports of Santos, Paranagua, and Rio Grande to Hamburg dropped about 38 percent. Freight rates to Shanghai also declined, but not as much as the rates to Hamburg, falling 16-18 percent from 2008 rates. Carriers serving the Brazil-Hamburg route do not have the flexibility to reduce capacity in the same way as the Brazil-Shanghai route due to the shorter voyage distance and lack of markets caused by the world recession. The distance from Santos to Hamburg is 5,683 nautical miles; from Santos to Shanghai it is almost twice that - 11,056 nautical miles.