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International sea freight shipping: how to deal with high prices?

International sea freight shipping: how to deal with high prices?

If you want to import or export from Brazil, you need to be clear on how this process works, but more than that, it is important to be aware of the increase in international maritime freight prices, in the current market panorama.

In this regard, we know that bureaucratic issues usually generate delays and difficulties in the operation, as well as specific situations, which are able to occur internationally, contributing to more costly demands, which influence the company’s business.

However, if you are determined about the advantages you can obtain when negotiating with Brazil, it is feasible to look for alternatives to act in the face of the less favorable scenario. 

Today, it is worth mentioning that the country exports several industrialized and semi-manufactured products , such as shoes, tropical fruits and textile products.

In order to elucidate your trajectory, in this content, you will have access to information and possible paths that can be crossed to better deal with this point that has affected both logistics operations. 

As a result, we hope that you will feel more able to carry out your processes assertively, contributing to growth in the sector. Continue reading and check it out!

International maritime freight and high prices: how to deal with it?

The news that trade as a whole has been facing several challenges with regard to meeting deadlines is not new, due to the inequality in relation to the supply and demand of containers.

This inauspicious scenario is largely connected to the crisis brought on by the Covid-19 pandemic, which brought about several changes worldwide, in the most varied sectors. 

One of the results of the situation was the increase in international maritime freight, which was unable to remain accessible and available for shipments.

Furthermore, a problem faced concerns the scarce shipbuilding capacity, which needs to grow and modernize as soon as possible, aimed at an expansion of the fleet for the coming years. If this occurs, there are great chances of stabilization in the financial field of freight, improving import and export relations.

In practice, when the value of freight rises substantially, in order to impact the final price of the product, there is a decline in forces and a decrease in competitiveness, since many exporters are no longer able to carry out their vessels of products. 

As for the people who choose to import, it is also common for them to alternate their route, because the value of the goods to the desired destination becomes very high, unbalancing trade.

Check out some alternatives for dealing with high prices

NOR (Non-Operating Reefer) Operations 

One way to acquire advantages with international maritime freight in operations with Brazil can be through NOR (Non-Operating Reefer) operations.

Put simply, this is a Refrigerated Container that is turned off, that is, it does not work for all types of cargo, for example, if the idea is to house meat or fruit.

However, if the objective is to ship manufactured products and dry cargo, in general, that do not require specific temperature control, this is a good way to save. 

Depending on the time of year, shipping for a container can be up to 40% cheaper than the Dry option.

Planning and flexibility regarding the date of shipment and division of batches

A crucial point in any successful organization is in planning, which needs to be efficient, in order to have flexible boarding dates and division of batches. After all, it is a fact that opting for short terms can result in greater margins for errors and higher prices, which you probably don’t want, right?

Therefore, it is essential to think about all stages of logistics, including the storage process, which can be done in its own or outsourced structure. 

In the receiving part, the focus should be on checking quantity, inspecting items and identifying them. As such, it is also important to check details, such as batch, manufacture and serial number. 

The planning must be thorough, containing what will be done after the goods are checked and identified, how the items and information about the shipping stage will be separated. With all the records made, your operations will certainly be more agile and less problems will have to be solved.

So?

As we have seen in this content, the operation of international maritime freight has undergone changes in the production chain, which contributes to the current scenario, with the increase in prices. As a result, there are fewer import and export processes, harming those who work with both.

Due to this, it is essential to go after mechanisms to deal with such contrasts, as you can observe throughout the reading.

Therefore, DC Logistics Brasil operates with high performance logistics delivery, with effective operations management. 

We have a network of agents that allows us to offer a global service, with proactive follow-up, flexibility and online cargo tracking tools. All made to provide the best customer experience.

We have extensive experience in maritime mode and serve several vertical markets. You can rest assured, as we are judicious in the analysis of cargo and route, in addition to having a fully prepared structure, guiding each essential phase.

To learn how we can contribute to your import or export process, click below and request a freight quotation with us with no commitment.

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Brazilian-foreign-trade-scenario-registers-growth-in-2021

Brazilian foreign trade scenario registers growth in 2021

Those who are following the current scenario of Brazilian foreign trade know that there are many business opportunities, especially for imports.

And we affirm this through our extensive experience in international logistics. After all, our team of specialists operates in markets in many countries. So, we can see that Brazil has excelled year by year.

We have created this content with those of you who want to carry out foreign trade operations with Brazilian businesses in mind.

Here we list everything you need to know to update yourself on this promising moment to import from Brazil.

Check out the most relevant market data, products, inputs and raw materials, and seize the opportunities of Brazilian foreign trade in 2021!

20 Brazilian products that boosted foreign trade in 2020

Brazilian foreign trade was already showing good results at the end of 2020. Even during the challenging scenario we are in, impacted by the coronavirus pandemic, good results were recorded for imports and exports.

In our blog, we have the tradition of listing the most exported products from Brazil for the year. In 2020, the list was led by:

Brazilian foreign trade scenario registers growth in 2021

Mainly through the movement of these products, Brazil recorded the following results:

  • USD 31.21 billion recorded with the flow of foreign trade in February 2021, with an 8.2% increase in the daily average, compared to the same month last year;
  • Exports grew 3.9% and totaled USD 16.18 billion;
  • On the import side, there was an increase of 13.4%, totaling USD 15.03 billion;
  • The trade balance recorded a surplus of USD 1.15 billion;
  • In addition, exports were driven by an increase in sales of 3.5% in the Manufacturing Industry and 13.8% in the Mining Industry;
  • And Brazilian commodities such as oil, sugar, coffee and meat recorded export records in 2020, in addition to a 13% growth in soybean exports.

Who is importing from Brazil and why?

Today, according to an analysis shared by Banco Santander, Brazil is among the 25 largest exporters and importers in the world. It is also the largest economy in Latin America, in addition to the ninth in the world list. This proves the economic potential to conduct good negotiations.

“While Brazilian exports were able to remain relatively stable due to the pandemic, driven mainly by a higher demand for agricultural products from Asian countries and the real devalued, the unprecedented drop in the volume of imports – with the main reduction observed in fuels and lubricants – was a result of the reduction in domestic demand amid the economic crisis caused by the pandemic,” notes Santander’s assessment.

It is important to consider that currently the main partners of Brazilian foreign trade are the markets of China, the United States, the Netherlands, Germany, Argentina, Japan, Mercosur and the European Union.

And the country continues to make changes to gain more competitiveness and space in foreign trade. One of the strategies adopted was to reduce documentary compliance time for export and import, as is also observed by Santander.

Brazilian foreign trade scenario registers growth in 2021

Agribusiness is still the sector of greatest interest in foreign trade for those importing from Brazil.

Import trends from Brazil in 2021

As can be concluded from the list we presented at the beginning of the content, agribusiness is still the sector of greatest interest to those who import from Brazil.

One of the most relevant commodities in the segment is soybean. Brazil is the second largest product in the world, registering an average productivity of 3,362 kg per hectare.

The importance of agribusiness is such that this is the main pillar of foreign trade between Brazil and China.

Proof of this was the statement of Chinese ambassador Yang Wanming released by The Rio Times, in which he reinforced the broad interest of Chinese companies to invest in technologies and infrastructure in this sector in Brazil so that the country continues to meet the demands of Asian imports.

In addition, there is a strong trend towards strengthening foreign trade in the energy sector. The Chinese are also very active in negotiations on wind and solar energy, as observed by the portal Dialogo Chino.

To top it off, imports focusing on the Brazilian beauty and hygiene industry have also stood out in recent months. The segment registered its first surplus in 10 years.

The result was a reflection of the high commercialization of toiletries, perfumes and cosmetics, and was driven by the devaluation of the real against the dollar, as published by Premium Beauty News.

We can help you import from Brazil with great efficiency!

Even amid the challenges and economic impacts generated by the pandemic, Brazilian foreign trade continues in growth.

And you can take advantage of this promising landscape in your business. Therefore, it is important to rely on a logistics partner that guarantees the confidence necessary for its import.

This is what our team has to offer for your operations! Our experts are on hand to help you conduct the best negotiations with Brazilians, as  we do in 186 countries where we operate.

And our complete solutions meet your import with agility, security and high performance. It is worth remembering that we are active members of the network of independent agents WCA, PPL, PCN and SFN.

So, request a freight quote without commitment and learn more about how our work can contribute to your import.

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