Market Trends of brazil courier, express, and parcel (cep) Industry
In 2022, Brazil secures USD 47.27 billion in logistics investment and expands privatization efforts to bridge infrastructure gap
- The Brazilian transportation industry includes cargo, passenger rail, logistical infrastructure, highways, ports, public transportation, urban mobility, and intelligent transportation systems. Since trucks are the primary means of moving cargo, logistics are more expensive in Brazil. Around 12% of the country's GDP (4% higher than in the United States) goes toward logistics costs, which is inefficient due to a lack of adequate transportation infrastructure.
- In 2022, the Government of Brazil (GoB) pursued an extensive privatization effort through a pipeline of concession auctions and regulatory reforms aimed at attracting financing to help narrow Latin America's most significant infrastructure funding gap. The federal government is expected to have secured nearly BRL 250 billion (USD 47.27 billion) in logistics investment by the end of 2022. The rapid growth in occupancy rates of available logistics warehouses, primarily due to increased online shopping during the worst part of the pandemic, continued in 2021.
- The Ministry of Infrastructure (MInfra) activities included virtual roadshows for foreign audiences to showcase concession opportunities in railways, airports, highways, and ports. In 2022, the government invested BRL 5.28 billion (USD 998.39 million) in three blocks: Rio de Janeiro - Minas Gerais (7 airports), North Two (7 airports), and Sao Paulo - Mato Grosso do Sul (7 airports).
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Due to an abrupt increase in global oil prices, the average gasoline prices increased by 16.3% in Brazil
- With increased international prices, an oil producer and refiner Petrobras-based company raised wholesale diesel prices by 24.9%, gasoline prices by 18.8%, and LPG prices by 16.1% in 2022. The primary fuel used to produce food in Brazil is liquefied petroleum gas, which is directly correlated with oil barrel prices.
- Due to the increase in oil prices in 2021, gasoline and diesel costs rose throughout Brazil. According to official statistics, fuel costs in Brazil climbed by more than 33% in the same year, resulting in more than 12% annual inflation. Residential gas prices increased by an average of 35%. Under the new law (n. 190/2022), the ICMS manufacturing tax is computed using a fixed number rather than a percentage of the pump price. In communities without access to conventional natural gas distribution networks, the ICMS contributes around 14% of the cost of a liter of diesel or a 13-kilogram LPG tank at the current pump price. The ICMS computation for biodiesel, diesel, gasoline, hydrous ethanol, and LPG would be adjusted. At the end of 2022, the Brazilian government was also expected to reduce or eliminate federal fuel taxes on biodiesel, diesel, and LPG for domestic production and imports.
- The Brazilian state oil company Petrobras approved a new fuel pricing policy for gasoline and diesel in May 2023 that sharply lowers costs by 13%. In August 2023, due to an abrupt increase in global oil prices, Petrobras planned to hike average gasoline prices by 16.3% to BRL 2.93 (USD 0.589) per liter, while diesel prices would be raised by an average of 25.8% to BRL 3.80 (USD 0.718).
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Brazil anticipates a 50 million drop by 2100 due to shift in workforce trends and delayed childbirth
- Oil and gas, mining and quarrying, along with the agriculture sector, is the fastest-growing industries contributing to Brazil's GDP
- Mercado Libre was the most visited e-commerce website in Brazil in 2022, followed by Americanas.com
- In 2022, Brazil secures USD 47.27 billion in logistics investment and expands privatization efforts to bridge infrastructure gap
- Brazil strives toward a reduction in fertilizer imports to 45% by 2050 under the National Fertilizer Plan
- Brazil's infrastructure ranked 78th in 2022 in the GCI, with a USD 0.33 billion roadway investment planned by 2038
- Brazil strives toward decarbonization of heavy industries in line with the Industrial Deep Decarbonization Initiative
- Brazil's PPI accelerated largely due to increase in petroleum prices, and CPI increased due to rise in tourism
- The manufacturing industry's contribution to GDP rose by 21% YoY in 2022, led by the automobile subsector
- Brazil intends to be the fifth largest crude oil exporter by 2030, led by investments in oil output growth
- Brazil reached 51st place in 2023, fueled by investments worth USD 49.6 billion in railways
