Ocean-Freight (frete marítimo)

Trade with Arabs incurs high freight prices

Jun, 14, 2021 Posted by Ruth Hollard

Week 202125

International trade has been facing an increase in maritime freight prices, affecting the transport of goods between Brazil and the Arab market. Although Brazil’s largest trade flows are not with this region – but instead with China and the United States – those who work in the sector say that prices are high to ship cargo to the Arab countries.

“It’s impacting everyone,” says the executive director of Primo Logística, Augusto Ferraiol. Primo Logistica operates with storage, national road transport, and national and international sea and air transport logistics and is focused on food. Operations with the Arab market involve imports from Egypt to Brazil and exports from Brazil to Egypt, the Emirates, Saudi Arabia, Libya, and Jordan.

See the table below for a history of cargo movement between Brazil and Arab countries from 2019 on, according to Dataliner data:

Imports and Exports between Brazil and Arab | Jan 2019 to Apr 2021 | TEU

Graph Source: DataLiner (click here to request a demo)

The commercial manager of TFA Cargo Logistics, Almir Baptista, notices a general increase in prices for ocean freight and difficulties in contracting cargo transport via ships. “For exports, the availability of ships and equipment is very complicated, not only to the Arab countries but in America in general,” he says. The main focus of TFA, a cargo agency, is not the Arab market, but the company wants to focus more on the region.

The high price of shipping has been felt mainly since the end of last year, but it is a story that began in 2020 with the beginning of the Covid-19 pandemic. Industrial stoppages in some regions of the world and difficulty obtaining raw materials in others changed the production volumes and addresses, affecting the scales and the coming and going of cargoes between countries. “It’s as if there was a misconfiguration of world trade,” says the Brazilian Foreign Trade Association (AEB) president, José Augusto de Castro.

Source: Brazil-Arab News Agency

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