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How do you strike a balance between paper costs and import costs?

How do you strike a balance between paper costs and import costs?

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You’ve probably already heard that everything is a matter of balance, haven’t you? And this also applies to the import costs of the pulp and paper market.

Therefore, those who want to take advantage of the opportunities that the Brazilian scenario has to offer for these operations need to know how to keep the accounts balanced.

It is a fact that we are living in an atypical scenario, which reflects many changes in the economy and behaviors. This affects businesses on all sides, both those who want to sell and those who want to import.

So, due to our high experience in importing, we are sharing some tips that can contribute to those who want to improve financial health with negotiations and efficient transportation.

After all, we know the main needs of the market and we will share everything you need to do for this cargo to reach your business with minimal import costs!

The relationship of the Brazilian paper market and import costs

When navigating the opportunities that the pulp and paper market has to offer, it is important to know about Brazilian maritime shipping, one of the most important modes of transport when serving this segment.

In addition to the information we have already brought on the blog about paper imports, it is worth mentioning that, in the last ten years, according to a survey by the CNI (National Confederation of Industry), there has been a reduction of companies operating in Brazilian ports. Therefore, this has resulted in increased import costs, including increased freight.

Now, in addition, pulp and paper importers in Brazil also need to deal with the decrease in the number of ships available and scheduled stopovers, due to the effects of the pandemic.

To top it off, it is necessary to consider the fluctuations of the dollar in import costs. According to the study by economist Affonso Celso Pastore, shared by Valor Investe, the appreciation of the Brazilian Real will only be a reality in the face of future fiscal consolidation. That is, the Brazilian currency will remain weak in relation to the US dollar.

We must not forget the costs of the goods themselves. According to the Money Times, with data from Ágora Investimentos, future prices of Brazilian fiber pulp should reach USD 1,000 per ton, and prices of short fiber pulp can reach USD 800.

Also according to the study, the pulp cycle continues to increase, so he values should rise during the year. So, it is important to consider everything you can do to reduce import costs in this scenario.

How do you strike a balance between paper costs and import costs?

It is important to consider everything you can do to reduce import costs in the pulp and paper market.

How do you balance import costs from Brazil?

Correct planning

Reducing import costs through logistics planning is a reality, as we have already published here on the blog. Therefore, it is very important to be assertive when defining logistics partners and stipulating the flow of information and pulp and paper goods.

The more aligned those involved in the operations are, the less risks will threaten the activities, contributing to meeting deadlines, cost and quality of service.

So, before choosing any freight forwarder, consider your business references, level of services, available communication channels and the portfolio of solutions offered. All these factors will influence import costs.

 

Expertise in tax documents and requirements

To avoid customs fines, it is important to conduct a detailed tax analysis. To do so, rely on professionals with documentation experience so that the efficiency of international logistics is not affected.

It is also essential to check the variety of the long-term freight contract as well as freight contracts for this commodity, which when exclusive, guarantee financial advantages.

 

Extend networking

Another factor that influences the import cost is the way the freight forwarder relates to other professionals in the market.

This is because, when it presents a wide logistics networking network, it is easier to rely on solutions in each adversity presented. So the risks of high costs in unforeseen situations decrease.

Thus, knowing who to count on and the quality of care reflects on the economy when importing from Brazil.

 

Invest in technology

The more technology, the more agility and precision and the lower the import costs. Therefore, relying on modern tools for monitoring information, with the possibility of knowing the status of the cargo in real time, allows transportation to occur with more flexibility and savings.

 

You are about to find the balance between paper and import costs!

At DC Logistics Brasil, our team contributes to reducing the import costs of pulp and paper from the high market expertise.

This reflects in scalability to ensure space for the international logistics operations you need.

Furthermore, we present the best-cost benefit along with competitive conditions for everyone involved, from trading companies, to importers and final agents.

To learn how we can contribute to your paper imports, request a freight quotation with us with no commitment!

 

SOURCES:

CNI – https://noticias.portaldaindustria.com.br/noticias/economia/exportacao-de-conteineres-cresce-48-desde-2010-mostra-levantamento-da-cni/

Valor Investe – https://valorinveste.globo.com/mercados/brasil-e-politica/noticia/2021/03/08/alta-de-juros-ter-pouco-ou-nenhum-efeito-sobre-o-cmbio-diz-pastore.ghtml

DC Logistics Brasil – https://dclogisticsbrasil.com/reduzir-custos-na-importacao/#:~:text=Para%20reduzir%20custos%20na%20importa%C3%A7%C3%A3o,fluxo%20de%20informa%C3%A7%C3%B5es%20e%20mercadorias.

Money Times – https://www.moneytimes.com.br/produtores-surfam-corrida-da-celulose-com-acao-a-disparar-ate-35/

Paper Imports: Check out promising data and insights from this vertical in Brazil!

Paper Imports: Check out promising data and insights from this vertical in Brazil!

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Look around and answer: How many objects can you identify nearby that are made of paper? With this quick assessment, it is already possible to realize the importance of the business related to your paper imports, isn’t it?

According to researchers, paper was invented in 105 AD in China. It has been present for thousands of years in countless activities of our routine, in different ways and in different nations.

Even with the intensification of the use of technologies, this market is constantly expanding and increasingly globalized. The demands for paper and pulp were high at the end of 2020, according to large companies in the sector, for example.

And the trend is that the recovery of the world economy, aligned with new consumption habits, add positive impacts.

In this sense, those who are following the opportunities of this vertical market know that they find many advantages when importing from Brazil, since the country has great representation in the sector.

Therefore, today we will present more information on the Brazilian Pulp and Paper segment, to prove how much it is worth expanding your negotiations with Brazil and investing in efficient paper transportation logistics. Check it out!

Learn about the scenario and trends in paper imports from Brazil

Senai Tecnologia e Informação, an important institution of Brazilian industry, listed the main trends in the pulp and paper market in 2021. See which scenarios are receiving the most investment and attention right now:

  • Creation of solutions and use of cellulose fibers to replace plastic;
  • Use of biodegradable and re-pulpable solutions to avoid application of petroleum-derived coatings;
  • Increased use of lignin and other materials such as fine particles, shells, dregs, and boiler sand;
  • Application of nanotechnology in products;
  • Increased use of technologies for predictive maintenance and other production processes.

We must not forget that, as shared in the content of O Papel Magazine, published by the ABTCP (Brazilian Technical Association of Pulp and Paper), the consumption of products related to the tissue paper and packaging sector has skyrocketed since the beginning of the pandemic.

This is because, they meet the needs of hygiene and cleaning, as well as quality in food storage and the delivery and shipping of online purchases. These behaviors and consumption have been intensified around the world during the challenging period we are experiencing.

And today, investments in technologies in factories in the sector boosts competitiveness. For this modernization, businesses are importing a lot of equipment, which is a trend in this market.

In Brazil

According to a survey shared by Senai Tecnologia e Informação, the Pulp and Paper market is considered one of the pillars of the national economy and almost all production is sent overseas.

Therefore, exports exceed paper imports and represent 67% of the national production volume, according to information shared in the “Panorama of Brazilian Pulp and Paper Imports in Brazil”, Sinpacel (Union of Pulp and Paper Industries of Paraná).

The port of Santos, in São Paulo, is one of the main supports of this market in the country, as maritime transport is the one most used by the segment. Paraná also receives high volumes of operations involving the transportation of cellulose, by road and also by sea, through Paranaguá.

It is worth remembering that, as shared by the Brazilian government agency BNDES, through the ” 2030 Industry Panorama – Paper and Pulp”, Brazil is a country with high efficiency in pulp production.

Thus, competitiveness is benefited by climatic conditions, which are favorable for forest development, as well as by the long history of investments of companies in the sector.

Therefore, since the 1990s, the Brazilian pulp and paper market has only tended to grow. Those who are abroad and follow these scenarios, are able to gain advantages in imports, which reflect in more profitability.

The BNDES also notes that the standard of globalized competition of the pulp and paper industry should remain that of a competitive oligopoly. As such, while some groups hold large shares of the market, other smaller ones compete in environments of free price formation.

With digitization, does paper run the risk of ending?

This is a fairly common discussion when it comes to paper. As there are more and more technologies that allow the replacement of this material in everyday life, many believe that paper will go into disuse in the future.

In the meantime, do you remember our evaluation at the beginning of this content? So after years of inventing computers, tablets and smartphones, paper remains with us. Thus, we can see that its use is still important in many activities.

Nowadays, paper consumption occurs consciously. Technologies contribute to sustainability. So, many digital processes ended up replacing paper and avoiding waste.

However, paper is a recyclable material, so it can be reused after chemical processes. To top it off, it can be produced from reforestation raw materials and environmental certifications. All this contributes to the demands of a greener future.

Therefore, it is not possible to say whether the paper will disappear from our daily lives in the near or more distant future. However, it is important to emphasize that its importance is currently fundamental for many sectors of society, and that environmental responsibility is increasingly present in their productions.

We will help you take advantage of the opportunities in Brazil

By viewing the figures and opportunities in the sector, which is increasingly globalized, it becomes clearer by creating assertive strategies and taking advantage of the scenarios in favor of businesses related to paper imports.

This is because the Brazilian market is one of the main ones to serve pulp and paper businesses worldwide, contributing to the good results of the sector worldwide.

However, to use all the opportunities that the paper market has to offer in one’s favor, it is important to prioritize some factors, such as the quality of international logistics involved in the business.

The form and speed of your work when supplying your customers in this segment, directly reflects on your competitiveness.

Thus, with efficient logistics solutions, it is possible to meet the demands and thus increase profitability in paper imports. And we can help you with this!

Our team is prepared to carry out cargo movements strategically and with high performance, to overcome the main logistics challenges of this vertical market, from shipment to delivery.

The technologies used in our processes contribute to optimize the time of operations, as well as so that you work with the best cost-benefit ratio when importing from Brazil.

This is because our unique know-how on the procedures of the world’s leading paper mills ensures a workflow with excellence already recognized by customers in 186 nations.

With DC Logistics Brasil’s paper and pulp transportation logistics solutions, you will have a specialized freight forwarder prepared to offer the best market expertise in a single operation.

If you have any questions about the matter, click here, perform a small registration, and we will contact you to clarify your questions!

 

SOURCES:

UOL Economia – https://economia.uol.com.br/noticias/reuters/2020/10/27/demanda-por-papel-e-celulose-segue-elevada-com-estoques-baixos-diz-klabin.htm

SENAI – https://www.senaipr.org.br/tecnologiaeinovacao/blog/tendencias-de-mercado-2020-celulose-e-papel-1-36287-427710.shtml

Sinpacel – https://www.sinpacel.org.br/informativos/2016/683/panorama-das-importacoes-brasileiras-de-celulose-e-papel-no-brasil.pdf

ABTCP – http://www.abtcp.org.br/boletins/abtcpcovid/PanoramaPOYRY_julho.pdf

BNDES – https://web.bndes.gov.br/bib/jspui/bitstream/1408/14241/2/Panoramas%20Setoriais%202030%20-%20Papel%20e%20celulose_P.pdf