Road freight

 Road freight

Road freight transport is an important logistical activity in the Brazilian territory, as this is the main modal used in the country. 

With a road network of 1.720.700 km of roads and highways, it has good travel options throughout the country and the cost-benefit ratio is very interesting compared to other modes. 

On the other hand, issues such as violence and poor road maintenance play against road transport. There is a lot to be understood in relation to this subject to have a complete picture. Check out!

What is the current outlook for road freight transport?

The current scenario of road transport is directly impacted by economic issues, but it will always be a heated segment, due to the volume of products transported daily.

Every day, new technologies and projects present themselves to both drivers and logistics companies. What can be said more generally is that the scenario is encouraging and also raises some important issues, which will be analyzed in more depth below.

the transport market

One of the factors that draws the most attention in the cargo transport sector is the specificity of services. There are a multitude of types of products being transported daily and some of them have specific needs. A grain shipment, for example, has different restrictions than a drug shipment, for example.

Each of these demands also contributes to the market being very democratic. After all, there are not only big players. 

This decentralization gives space for small and medium-sized businesses to emerge, conquer the market and compete for opportunities. Competitiveness makes the scenario fair and also with more options for those who need to use the service.

The growth of demands due to e-commerce

With the immense volume of cargo transported monthly in the country, originating from online orders, the delivery service is growing more and more. The convenience, increased security in purchase transactions and the number of sites that deliver to the entire national territory have made the sector more heated.

The scenario is also designed to meet this demand, which is, of course, different from other types of large-volume and heavy loads. Short terms, for example, are a requirement of the segment due to the sense of urgency linked to the new habits of the modern consumer.

Because of this, companies that work with e-commerce deliveries need a very strategic logistical planning to ensure satisfactory results for both the company and its customers.

The implementation of technology in cargo transportation

A tech it is increasingly essential in companies of all sizes, from planning to monitoring the delivery of cargo.

One of the main resources currently used is based on artificial intelligence. The proposal is to apply the capacity of machines in route planning, as the systems are able to trace the best paths for drivers, whether in urban stretches or highways. The idea is to obtain a shorter delivery time, also considering factors related to safety and cargo preservation.

O cargo tracking is another highlight, as it allows real-time monitoring of the truck's displacement with the products.

Complete systems of logistics management they also help streamline bureaucratic processes, such as issuing invoices and requesting transport authorization. These software make the routine of companies more agile and productive. There are also modules that automate the freight calculation within the standards of the updated tables, which avoids any possibility of error.

The Regulatory Framework for Cargo Transport

The new Regulatory Framework for Road Cargo Transport is a document that aims to improve the working conditions of those who work in this area. 

Among the main changes are:

detailed road safety rules;

conditions for hiring employees in transportation services;

payment conditions;

driver insurance;

toll vouchers.

One of the highlights of the Regulatory Framework is the range of guidelines aimed at the self-employed, workers with employment relationship and the logistics companies themselves. In this way, everyone tends to gain from the reforms.

Changes in shipping

With the approval of the Law No. 13.703 / 18, a table with minimum freight prices in Brazil was created. In addition, more practical issues regarding freight payment have been changed.

The new law states that freight must be paid upon delivery of the cargo, being made by deposit in the carrier's account. Any delay already entails a 10% fine, 1% monthly arrears and monetary correction. 

What are the main challenges encountered in this type of transport?

In the road sector, despite all the facilities presented, there are many challenges that need to be overcome daily, either by companies or by drivers.

Check out what these main ones are challenges:

poor condition of the roads

With so much demand, investments in the road system should be proportionate, but the road infrastructure leaves a lot to be desired. From a financial point of view, little of the toll amounts, for example, are directed towards structural improvements that need to be made. After all, only 14,2% of the roads in Brazil are paved. 

The consequences of this situation of neglect and abandonment are seen from different perspectives, the main one being security. Unpaved and poorly maintained lanes become a risk factor for drivers. In specific conditions, such as days of heavy rain, security is even worse, which can lead to delays in the delivery time of cargo.

There is also the aspect of mechanical damage. If the roads are not adequate, this will naturally result in problems for the fleets.

Freight value lag

The mismatch of freight values ​​was one of the main problems that carriers and self-employed workers had to deal with over the years. Amidst the recession, there was no readjustment in values, since the concern was to maintain the volume of demand, even with the price already out of phase.

As you have seen, law 13.703/18 deals with the renewal of the calculation base table, which was an advance. However, overall it is more of a price correction. The ideal was that freight, over time, would undergo basic adjustments, as well as other services from different segments usually do.

Cargo theft

Never in the history of road freight transport in Brazil has there been such concern with safety. The critical moment can be translated into frightening numbers: only in 2018, the number of cargo theft reached 22 thousand. 

The problem revolves around real organized gangs that cause losses on an almost unimaginable scale. In the last survey, carried out in 2018, the total values ​​in the country reached R$ 2,5 billion. For companies, this represents a huge problem, even though there is the possibility of carrying out cargo insurance.

It turns out that, with such a large recurrence of these events, insurance companies are no longer interested in working with volumes, especially of trucks that pass through urban stretches of highways, such as in Rio de Janeiro. 

Circulation restriction in urban centers

The circulation of trucks in urban centers is a very common reality in large states, such as São Paulo, Rio de Janeiro and Minas Gerais. There are restrictions that prevent large vehicles from sharing space with passenger vehicles during business hours. 

The measure is applied to protect the transport infrastructure of cities, but, consequently, it becomes a real challenge for road freight transport.

Because of this, self-employed and transport companies need to adjust their logistical planning when the routes cross the urban areas of the states. Each city has its own rules, but generally, these limitations are aimed at allowing truck drivers to have greater freedom only at nighttime, including at dawn. This causes natural wear and also impacts cargo delivery time, which can lead to financial losses.

How to find the best company to carry out road transport?

For businesses that need to outsource the transportation of their products, having a competent and qualified service provider is essential. 

As you've already seen in this article, there are companies of all sizes and specialties. The ideal is to find the one that offers the best conditions, considering financial aspects as well as cargo preservation. 

Here are the best tips to hire the right carrier for your business:

Understand your business needs

Companies have different needs, restrictions and even legal requirements to be fulfilled when transiting their volumes. A very common example is regarding the transport of medicines, where there is the Anvisa regulations regarding temperature conditions, cargo protection, handling and other details. Not all companies in the market offer qualified support to transport this type of product.

Because of this, in this search it is necessary to find a provider that has the technical capacity to protect your product and ensure that it reaches its destination in the best conditions. 

Search the options extensively

It will not always be easy to find a road freight transport provider that fully meets your company's demands. 

There are several ways to reach the ideal carrier, and the most important is to look for information about other competitors in your market category. Which service providers do they usually hire? This can be a good indicator that you have the best transportation option for your company. You must also consider cost-effectiveness.

During the reading, you understood better how road freight transport works in Brazil. Despite the low investment in infrastructure, the perspective is that the sector will continue with high demand, which is financially encouraging.

If you are looking for a carrier, Atento Express is one of the market leaders, offering multimodal options for all budgets and emergencies. Visit our website and get to know our services better!

For more details visit our website:

http://seaporthub.co.uk/