Market Trends of brazil freight and logistics Industry
In 2022, Brazil secured USD 47.27 billion in logistics investment and expanded privatization efforts to bridge infrastructure gap
- Brazil's transportation sector encompasses cargo and passenger rail, logistical infrastructure, highways, ports, public transportation, urban mobility, and intelligent transportation systems. The reliance on trucks for cargo transportation makes logistics more costly in Brazil, with approximately 12% of the country's GDP allocated to logistics expenses, a rate 4% higher than that in the United States. This inefficiency can be attributed to the insufficient transportation infrastructure in place.
- 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 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 Brazilian Government's significant privatization efforts involve concession auctions and regulatory changes to attract financing for addressing Latin America's largest infrastructure funding gap. The Ministry of Infrastructure (MInfra) conducted virtual roadshows to present concession prospects in railways, airports, highways, and ports to foreign audiences. In 2022, government investment of BRL 5.28 billion (equivalent to USD 998.39 million) was allocated to three blocks: Rio de Janeiro - Minas Gerais (7 airports), North Two (7 airports), and Sao Paulo - Mato Grosso do Sul (7 airports).
__Share___Of_GDP__Brazil__2017-2022.svg)
Understand The Key Trends Shaping This Market
Download Sample
The Brazilian state oil company Petrobras approved a new fuel pricing policy for gasoline and diesel in May 2023
- 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).
- 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 reduced federal fuel taxes on biodiesel, diesel, and LPG for domestic production and imports.
- In February 2024, diesel, gasoline, and cooking gas prices rose by around 12.5% due to adjustments of the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) state goods and services tax. This increase was decided by the national committee of state finance secretaries in October 2023 and marks the first adjustment of ICMS on fuels since 2022. A law passed previously unified this tax across Brazil and set a minimum period of one year before the first rate change, with subsequent revisions permitted every six months.
Understand The Key Trends Shaping This Market
Download Sample
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 secured USD 47.27 billion in logistics investment and expanded privatization efforts to bridge infrastructure gap
- Brazil strives toward a reduction in fertilizer imports to 45% by 2050 under the National Fertilizer Plan
- Sales of heavy truck sales have been growing in the country since 2021, overcoming the impact of COVID-19 pandemic on the economy
- Registrations of new trucks in Brazil accounted for approximately 126.6 thousand units in 2022, down by 2% from 2021
- The Port of Santos in Brazil topped the shipping connectivity index in 2022 and attracted an investment of 38 million for capacity expansion from DP World
- Private entities invested around USD 250 million in the Santos Port to adopt digitalization through automation
- Increasing investments across all modes of transport to boost capacity is driving the market's growth
- 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
- The rising fuel costs of diesel resulted from global supply challenges, impacting the overall trucking operational costs
- Brazil reached 51st place in 2023, fueled by investments worth USD 49.6 billion in railways
- Investments in road and sea freight resources and facilities are expected to drive growth
- Brazilian ports expanded from 2017 to 2022, as liner shipping connectivity index score increased to 40.29 in 2022
- Road freight rates were significantly impacted due to factors like slow selling, high tire prices, and inflation
- Brazil's infrastructure ranked 78th in 2022 in the GCI, with a USD 0.33 billion roadway investment planned by 2038
