What are the Main Obstacles that Logistics Face in Brazil?
Historically, the logistics sector has suffered from a concentration of 60% of its activities on roads, and they have some type of deficiency in 73.9% of them (2017). Logistics faces several problems in Brazil, and the deficient ring road structure is the most aggravating problem in the industry. Check out the biggest difficulties encountered by logistics in Brazil!
Violence on Highways
Cargo theft is one of the biggest concerns that logistics faces in Brazil. The attacks of specialized gangs increase with each passing year, putting at risk the lives of drivers and other employees and generating considerable losses for companies. In order to alleviate this problem, companies invest in cargo monitoring and route planning so that they can advise the driver of the best highway to follow and at what time of day. With the increase of insecurity also increased the number of contracted armed escorts to protect the loads. It is essential to talk about the importance of knowledge and the use of appropriate insurance for each type of cargo. The WAIVER Group carries out all its operations with internationally recognized insurers and has specialized insurance professionals in the group. Always demand insurance on your projects and ask to see the insurance policy registered!
Poorly Maintained Highways
Roads in Brazil are suffering because of the low public investment in improving the road network, and it is the most serious problem that the logistics sector faces in Brazil today. The main problems encountered on the roads are: poor infrastructure, holes, poor lighting, paving faults and poor signage, among other problems. This problem generates an increase of the time of the realizations of the deliveries, causes damages in the load and in the fleet, it causes accidents, and that it in much the logistical costs. Many of these sections belong to private companies, which avoids the lack of safety in the route due to bad conditions, but it generates an additional cost for the company and a very good planning for the fulfillment of deadlines especially for loads of events.
Brazil, a continental country
Brazil is a country of continental dimensions, being the 5th largest country in the world. The large extension of the country added to the precariousness of the roads make difficult the logistics in the country. In some states in the north and northeast of Brazil there are simply no paved roads linking one municipality to another, which often makes road transport impossible. Domestic air transportation is used and there is huge air cargo traffic between the Southeast and North of Brazil, especially from Guarulhos to Manaus, daily! It is as if a country that exports hundreds of tons of cargo to the other and it is from Brazil to Brazil! But domestic air transportation insurance is still very expensive in Brazil. This territorial issue also ends up increasing the number of days that a delivery can be made, which adds even more to the company’s logistics budget for some destinations.
High tax Burden
Brazil is one of the countries with the highest tax burden applied to logistics operations in the world. All high taxes and duties bring increasing freights for companies, making it difficult to reduce costs. This ends up hampering the growth of business and the Brazilian economy as a whole. That is why many companies choose to outsource delivery services, not to end up incorporating this extra cost into the product.
For WAIVER, none of this is a hindrance! WAIVER is present in the main Latin American countries with its own structure and dedicated partners that work with the same DNA of the WAIVER Group: transform the customer’s need into differentiated logistics solutions for international events. Working with major sport events like Formula 1 and Rock in Rio, our motto is: “No matter where, we deliver.”