Brazil Soybean Transportation: Seasonally High Soybean Transportation Cost

摘要

During the 2nd quarter, the cost in Brazil of shipping a metric ton of soybeans 100 miles by truck increased about 17 percent to $10.77, from $9.25 at the same time last year. This is slightly below the 2008 rates. Rates began declining in May and June but remained higher than February levels as the intensity of the harvest continued. About half of the Brazilian soybean production is harvested from April to June. Record soybean production (68.71 million metric tons), limited port capacity, and lack of alternative transportation resulted in higher soybean truck rates. During May, congestion at the export terminals in the Port of Paranagua caused a diversion of soybean shipments through the Port of Sao Francisco do Sul, located 155 miles south of Paranagua. Brazilian carriers and trading companies are adding efficiency to the transportation system by backhauling fertilizer from the ports to major production areas. In the past, there was not much interest in backhauling fertilizer at harvest season but port congestion and poor infrastructure are forcing carriers and shippers to coordinate efforts to lower transportation costs. Ocean rates declined 12-16 percent to Shanghai but increased 4-7 percent to Hamburg. The increase was caused by higher grain export demand and boosts in iron ore and sugar shipments. Transportation costs represented 33-36 percent of the total landed cost of shipping soybeans from Sorriso, North Mato Grosso (MT), to Hamburg and Shanghai.