GENERAL OVERVIEW

TRANSPORT IN BRAZIL

0 E-book
 2

INTRODUCTION

The unfavorable economic environment reflects directly in the

transportation sector, because with the reduced sales freight
also face a downturn. The idle is another aggravating facing
the logistics segment. According to Folha de São Paulo, 43%
of empty travels trucks, raising the cost of freight and
overloading the road transportation. Still the outlook for the
transportation of cargo is promising, with innovation and
technology the industry begins to undergo a transformation.

The Fleet Current Report 2016 shows an increase of

about 1.1% of the fleet
 3

trucks, much lower percentage than the previous year, which was 5%. Yet the Brazilian government intends to implement a
reduction in the fleet of freight trucks, so they have gone in new trucks in the market but continued running the old roads. The
solution was to re-register all vehicles registered in the National Land Transportation Agency, inserting a chip and an adhesive
for automatic surveillance of these trucks.

With the use of technology and the implementation of 200 survey points will be easier to monitor the movement of vehicles. It is
known that the majority of the current fleet is concentrated in five states: São Paulo, Minas Gerais, Rio de Janeiro, Rio Grande
do Sul and Parana. The Map Freight, Cargo of Sontra, also reveals that the most common routes are: Itajaí, São Paulo, Curitiba
and São Paulo Bebedouro and-Paranaguá. Longer routes with higher of cities are: Guarulhos, Campinas, Guarulhos and
Sorocaba, São José dos Campos, São Paulo.

We created this eBook to help those working in the logistics sector to face the challenges of everyday life. Here we present
an overview of the cargo transport in Brazil: the impact of idleness, the cost of the composition, the use of technology and
solutions that can make them more efficient and transparent logistics processes.

FREIGHT MAP
The Map Freight, Cargo of Sontra, analyzed more than 91,000
routes and 587 000 freight resulting in highly relevant data. The leader of remittances, mostly for the state itself. The second
study reveals that the most common route between cities is
leaving Itajaí, Santa Catarina, to the city of São Paulo. Curitiba
is the second destination send more remittances to the state
capital. The third most common route connects Trough, in São
Paulo, the port city of Paranaguá, in Paraná state.
ROUTES COMMON BETWEEN CITIES
Itajai (SC) Sao Paulo-SP) Curitiba (PR)
4
The comparison between states reveals that São Paulo is the
destination with the highest volume of freight is the Rio de
Janeiro, followed by Minas Gerais. The study also shows that
29% of cargoes are shipped on road train trucks; 26.4% LS
trailer;
15.9% 13.2% trucks and trailers. Already the most used
bodies are: 31.4% bulk carrier;
Low grade 27.2%; 15.5% and 13.5% sider bag.
Sao Paulo-SP) Trough (SP) Paranaguá (PR)
 5

COMMON ROUTES BETWEEN STATES

Sao Paulo Sao Paulo Sao Paulo Rio de Janeiro Sao Paulo Minas Gerais

CHARGES BY TYPE OF TRUCK CHARGES BY TYPE OF BODY

trailers
31.4% bulk carrier 27.2% Low grade
13.2% rodotrains

29%
15.9%
trucks

26.4% 15.5% Sider 13.5% Chest

LS trailers
 6

A case study on operating costs and freight pricing in road cargo

transport shows that the transport sector grosses over R $ 80 billion
and moves two-thirds of the country's cargo. However, paved roads
grew by only 23.2%, while the vehicle fleet increased 184.2% in the
same period, according to the CNT Transport directory.

The newspaper Folha de São Paulo published a report which says

that 43% of empty trucks travels. This explains the heavy traffic of
trucks roaming the highways. In addition to degrading the
environment, the trucks circulating with idle spaces still hamper traffic
and promote the wear of road transportation. To minimize the
problem, the government has established measures to reduce the
fleet of cargo trucks.

WHAT DOES THE LAW?
Last year's data show that Brazil has 3.2 trucks and half the
fleet is able to make shipping. Speaking to reporters, Ricardo
Gallo engineer, estimates that Brazil has a surplus of 300,000
trucks. That's because new cargo vehicles entered the market,
but the old remain roaming the roads. With the above demand
offer shippers need to be more careful to ensure the quality of
logistics services.
An alternative found to ensure the quality and increase safety
on the roads is to promote changes in legislation. An example
is the Driver's Law, which entered into
7
effect in April 2015. In addition to regulate the profession of
those who work in the logistics sector, the law makes several
requirements, such as conducting toxicology tests, working
hours and rest period, among others.
The Carrier's Guide Portal met the main laws, rules and
regulations related to cargo transportation. There you can
see from documents and mandatory equipment, to
operational offenses and predicate offenses. Stay tuned to
overweight, excessive smoke and problems with tachograph,
not to infringe or hire a carrier that violates the law.
 8

Legislation may have direct interference in the cost of What are fixed costs?
cargo transportation and delivery. This is because some • Driver Salary
cities do not allow truck movement in certain regions or • Truck depreciation
zones. Loading and unloading can also have limitations • compulsory insurance

and all this impacts in logistics processes. Remember that • tax collection
the law also has specific rules for different types of cargo,
so stay tuned. What are variable costs?
• Fuel • tires
• lubricants • Parts

Logistics costs to maintain its own fleet are high and in recent years also had an increase. According to the
National Transport Confederation, companies designed about 12% of revenue for logistic activities. With the
economic crisis and the high price of diesel this percentage had an increase, an increase of 30% in some
segments. The result is that the industry passes on these costs to final consumers and sales tend to fall. But,
you can avoid unnecessary expenses adhering to the outsourced transport of high quality.
 9

CREATING THE COST OF FREIGHT

TRANSPORT

Calculate cargo transportation costs is not as simple as it
sounds, we must consider fixed and variable expenses, the
characteristics of each vehicle, pickup and delivery routes in
addition to the weight and characteristics of the product. In
Xperts Blog you find a specific post on the main operating
costs of freight transport.
alternatives to reduce the cost of cargo transportation, without
compromising quality. That is not always the best alternative is
to focus only on the price of shipping, you should also
consider compliance deadlines and security issues.

The outsourced transport is a global trend, but before choosing

the supplier has to take into account aspects such as:
marketing, service, demand and quality. Therefore, the logistics
professionals must work grounded in data. It is the best way to
find the best
 10

Technology can be a strong ally to reduce logistics costs. This is one of the proposals CargoX, which is applying a new
dynamic in the transport of domestic cargo. This is the first carrier-based bigdata technology in Brazil, which seeks to
eliminate the inefficiencies of the segment by connecting with a network of thousands of carriers and self-employed
professionals.

COST OF IDLE
Idleness is present in almost half of Brazilian logistics
operations. According to Folha de São Paulo, 43% of empty
travels trucks, raising the cost of freight and overloading the
road transportation. This is because the deliveries are made
unidirectional, with few exceptions. The CargoX was created
exactly to synchronize the distribution of loads on the way and
back, ensuring that the truck does not return empty.
Some companies even afraid to transfer the logistics activities
to a supplier. If your business is one that still maintains its own
fleet, it is imperative to calculate the cost of idleness. You will
realize that it has a direct impact on the budget for the logistics.
Same
11
that company lose some autonomy to outsource freight
transportation, management gains more time to devote to
what really matters and need not even afford vehicle
depreciation costs and other costs involving shipping.
When sales fall, companies that have their own fleet
continue with the obligation to pay the transport costs, even
if do not make any charge. In other words, it is necessary to
service the truck, collect taxes, pay the salary of the driver
and all part of the cost of idleness. The projected savings to
acquire its own fleet becomes an expense for the company.
 12

DEEMED COST OF IDLE IN FREIGHT TRANSPORT

REDUCING THE IDLE IN FREIGHT TRANSPORT REDUCE ENVIRONMENTAL IMPACT,

" REDUCE COST OF FREIGHT AND DECREASE OF VEHICLES ON THE ROADS.
"
 13

TRENDS FOR FREIGHT TRANSPORT

Innovation and technology are already part of everyday logistics. and the use of artificial intelligence. The Blog Xperts has
With the use of software can capture information that make already presented some of the main possibilities that
taking simple and effective decision. In addition to facilitating the technology offers to transport loads.
operation of the carrier, the technology also allows the shipper
to track all stages of the process, including tracking the real-time
load. The operations also become more transparent, as As I highlighted earlier, CargoX carrier is a sample that uses
technology increases safety. technology to improve logistics processes. Customers have
access to the shipper panel to track the shipment. In addition
to technology the company also invests in the training of its
employees, both service team, as drivers. The purpose is to
spread the culture of the company, focused on service to
The use of applications, big data and business customers to see aa organization as a partner to achieve
intelligence are just some of the innovations available to success.
transport loads. Technology can completely transform
the sector through connectivity with autonomous trucks
 14

KNOW

CargoX is a carrier, which has information generated by its technology, which by connecting with local
and independent truckers carriers, maintains an active network carriers in all regions of Brazil with more
than 100,000 vehicles. Through this information, we can provide transport services with quality and
agility, providing supply variations in the fleet and identifying idle routes. Thus we got a better use of
space and empty trips in order to offer shippers who need to transport their products, a qualified shipping,
insurance and up to 30% savings in freight costs.

FOLLOW THE SOCIAL NETWORKS