When taking the Pacific routes, farmers who use the ports of the Northern Arc can have a reduction of 35% in freight rates. According to Conab (National Supply Company), the fall in rates will come about even with the payment of the fixed charge of the Panama Canal. Conab sees the sea route as an important alternative to improve the competitiveness of Brazilian agricultural products, also opening new markets from Asia. The Pacific route may provide less navigation time, reduce freight fee and operating costs, as well as cut fuel and emissions. “Some improvements in infrastructure are needed to achieve the reduction rate, as to adapt Brazilian ports to these opportunities, such as the use of the Panama Canal”, says the superintendent of Operational Logistics at Conab, Thomé Guth. “For this reason, some Brazilian companies and port terminals have already signed an international agreement for the exchange of information and technical cooperation with the Panamanian authorities”.
Source: Canal Rural
*Tranlsated by Ia Niani