Falling freight prices are a boon for North Arc corn exports

Mato Grosso’s farmers and trading companies are celebrating the lower average freight prices after a good corn harvest. Some important routes — such as that from Sorriso (Mato Grosso) to Itaituba (Pará) — have seen a year-over-year drop of 13.18% in the average price in July, data by EsalqLog shows. With the decrease, the freight cost is R$205.18 a tonne, compared with R$236.35 in July 2019. In addition to the surplus of available trucks, the road freight from Mato Grosso to Arco Norte fell after BR-163 highway, which connects the north of Mato Grosso to the Port of Miritituba, was paved. “The trip became faster and cheaper regarding vehicle maintenance, what cheapened the freight since the beginning of the year,” says Abner Matheus João, a researcher at EsalqLog. The paving of the road has already increased the flow of soybean to ports in the northern region to 5.13 million tonnes from 3.7 million in the same period last year, Mr. João says. Arco Norte includes Roraima, Amapá, Amazonas, Pará and Maranhão states.

Source: Valor International