{"id":5488,"date":"2022-02-17T14:42:38","date_gmt":"2022-02-17T17:42:38","guid":{"rendered":"https:\/\/savilog.com\/?p=5488"},"modified":"2022-09-22T14:45:25","modified_gmt":"2022-09-22T17:45:25","slug":"challenges-faced-by-cabotage-in-brazil-2","status":"publish","type":"post","link":"https:\/\/savilog.com\/en\/challenges-faced-by-cabotage-in-brazil-2\/","title":{"rendered":"Challenges faced by cabotage in Brazil"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Cabotage has been highlighted in recent years as one of the most viable ways for Brazilian companies to achieve more efficiency and safety in the movement of their cargo within the country.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This type of operation grows more than 10% a year and Brazilian Federal Government expects this index to reach an incredible 30% annual growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is because the \u201cBR do Mar\u201d project was approved in 2020, placing cabotage even more in the news as it increasingly becomes an option seriously considered by major logistics operators in Brazil.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we will get to know a little better about cabotage and the \u201cBR do Mar\u201d project, which promises to revolutionize the reality of cargo transport in Brazil.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><b>But what is cabotage?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cabotage is maritime transport carried out between ports within the same country.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The name cabotage is a tribute to the important Venetian navigator Sebastian Cabot, who in the 16th century explored the entire North America coast.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This mode of transport has the potential to provide an important positive economic impact for the country due to its handling capacity, which normally takes place in containers, the low cost, the safety of the operation, and the reduced environmental damage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among the main benefits of cabotage we may highlight:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Logistical efficiency \u2013 as the country&#8217;s navigable coast is the main transport route, cabotage does not suffer as much as other modes problems such as traffic jams, the condition of roads or railways, availability of vehicles and the fuel high costs.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">The high level of security \u2013 among the available modes, it is the one subject to the lowest rate of theft, robbery, loss, and damage to the goods handled.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Environmental efficiency \u2013 using the country&#8217;s waterways, cabotage is the modal that requires the least fossil fuels in the ton\/kilometer ratio, which means that it emits less harmful gases to the environment.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But as in whatever logistical solution chosen: not everything is perfect and cabotage also faces some specific challenges that are very well understood and studied today.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The main challenges faced by cabotage operators in Brazil are the long delivery time, the limitation of available routes, and the restriction over flying foreign flags ships.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bureaucracy for releasing the loads in the pre-shipment and post-shipment is the main cause of the slow delivery of the cargo sent. By itself, the maritime modal is already the one that naturally presents the longest transit time, with the addition of numerous supporting documents required, the length of the journey becomes even longer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even taking advantage of the extensive Brazilian coast and still having the possibility of using the Amazon basin, cabotage is only possible where there are adequate port structures for ships to be moored and cargo to be properly unloaded. In addition, although the longest stretch is carried out by water routes, there is still dependence on the flow of cargo using the road modal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As it is a logistic solution that aims to benefit and use the country&#8217;s resources, the fact of restricting the cabotage practice only to Brazilian flag ships makes the technological level and the market competition lower, delaying the positive impact expected by the project for the economic development of the country.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even so, understanding the main challenges of cabotage, we are able to perceive even more importance in the aforementioned BR do Mar Program, which seeks to bring direct solutions to such problems faced.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Formally known as the Cabotage Transport Stimulation Program, BR do Mar support its measures on four pillars whose main objectives are to stimulate competition, reduce costs and establish new routes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The four pillars of the program are: fleet, naval industry, costs, and ports.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the naval industry, the government mainly aims to stimulate the naval sector regarding maintenance and repair services. The main action is to enable the use of Marine Merchant Fund resources so that both foreign and Brazilian companies can enjoy the services of Brazilian shipyards.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With regard to costs, the main focus will be on reducing bureaucracy and simplifying the required procedures that burden cabotage operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Brazilian ports, the BR do Mar promises to increase the operational capacity of the available terminals through new leases of port regions, flexibilization of contracts for the entry of initial loads, tenders for new port operators, authorization of private operators, not to mention the large investments in existing contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regarding fleets, the Federal Government will stimulate competitiveness as a result of promoting an increase in the available fleet by authorizing charters of foreign ships for the use of Brazilian Shipping Companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What is known is that cabotage is the great Brazilian bet for the balance of the country&#8217;s logistics matrix for the coming years, expecting to reach 2 million TEUs handled in 2022.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cabotage has been highlighted in recent years as one of the most viable ways for Brazilian companies to achieve more efficiency and safety in the movement of their cargo within the country. This type of operation grows more than 10% a year and Brazilian Federal Government expects this index to reach an incredible 30% annual&hellip;<\/p>\n","protected":false},"author":5,"featured_media":5486,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[356],"tags":[],"class_list":["post-5488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-trade"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Challenges faced by cabotage in Brazil - Savilog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/savilog.com\/en\/challenges-faced-by-cabotage-in-brazil-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Challenges faced by cabotage in Brazil - Savilog\" \/>\n<meta property=\"og:description\" content=\"Cabotage has been highlighted in recent years as one of the most viable ways for Brazilian companies to achieve more efficiency and safety in the movement of their cargo within the country. This type of operation grows more than 10% a year and Brazilian Federal Government expects this index to reach an incredible 30% annual&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/savilog.com\/en\/challenges-faced-by-cabotage-in-brazil-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Savilog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/savilog.brasil\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-17T17:42:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-22T17:45:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/savilog.com\/wp-content\/uploads\/2022\/03\/Setembro-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Savilog\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Savilog\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/savilog.com\\\/en\\\/challenges-faced-by-cabotage-in-brazil-2\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/savilog.com\\\/en\\\/challenges-faced-by-cabotage-in-brazil-2\\\/\"},\"author\":{\"name\":\"Savilog\",\"@id\":\"https:\\\/\\\/savilog.com\\\/en\\\/#\\\/schema\\\/person\\\/048e8b37c42b350875a86172db04cb96\"},\"headline\":\"Challenges faced by cabotage in Brazil\",\"datePublished\":\"2022-02-17T17:42:38+00:00\",\"dateModified\":\"2022-09-22T17:45:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/savilog.com\\\/en\\\/challenges-faced-by-cabotage-in-brazil-2\\\/\"},\"wordCount\":789,\"publisher\":{\"@id\":\"https:\\\/\\\/savilog.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/savilog.com\\\/en\\\/challenges-faced-by-cabotage-in-brazil-2\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/savilog.com\\\/wp-content\\\/uploads\\\/2022\\\/03\\\/Setembro-.jpg\",\"articleSection\":[\"International Trade\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/savilog.com\\\/en\\\/challenges-faced-by-cabotage-in-brazil-2\\\/\",\"url\":\"https:\\\/\\\/savilog.com\\\/en\\\/challenges-faced-by-cabotage-in-brazil-2\\\/\",\"name\":\"Challenges faced by cabotage in Brazil - 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