What is the market impact of Brazil declining trade surplus on break bulk
Factors affecting freight forwarder break bulk Freight transportation
In international freight transport, one of the most concerning issues is the price of freight transport. The cost is directly related to the cost of transportation. Because many exporters do not understand the price of transportation very much, and often have a lot of extra spending, then today to understand the factors of the price of international freight transportation?
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Brazil's trade surplus fell 22.7 percent year-on-year to $5.444 billion in July, according to a report released by the Foreign Trade Bureau of the Ministry of Economy.
In the first seven months of the year, Brazil's trade surplus totaled $39.75 billion, down 10.4 percent from a year earlier, the data showed. Brazil exported $29.95 billion in July, up 23 percent from a year earlier. Among them, the export of agricultural products increased by 40.2% year on year, and the export of soybeans increased by 23.8%. Exports of industrial products rose 33.2 percent year on year. However, mineral exports fell 5.6 percent from a year earlier.
Imports rose 41.6 percent year on year to $24.51 billion in July. Among them, imports of industrial products, mineral products and agricultural products grew by 43.4 percent, 35.2 percent and 8.9 percent year-on-year, respectively. Imports of crude oil and fertilizer rose 98.5 percent and 175.3 percent, respectively, from a year earlier.
Brazil's Ministry of Economy's Foreign trade bureau expects exports of $349.4 billion and imports of $268 billion in 2022, resulting in a trade surplus of $81.5 billion, up from a record $61.4 billion last year. In Brazil, financial markets latest expect a surplus of $67.2 billion this year. Local media in Brazil noted that demand for fuel and fertilizer in the wake of the Ukraine crisis had increased Brazil's import costs.
Separately, the S&P Global Purchasing Managers' Index (PMI) for Brazil came in at 54.0 in July, down slightly from 54.1 in June. The July PMI data reflected a slowdown in economic growth and easing inflationary pressures in Brazil's industrial sector, the report said. Factory orders and output grew at three-month lows, while spending trends were mixed. Growth in production inputs slowed markedly, while new jobs rose at their fastest pace in more than a year. Stronger business confidence has been a major factor in the recovery. On the price side, production inputs grew at the slowest pace since May 2020, while price inflation fell to a five-month low.
Brazil's financial market analysts raised their economic growth forecasts and lowered their inflation forecasts for this year, according to the latest Focus report released by the central bank on Tuesday. Analysts raised their forecast for Brazil's growth this year to 1.97% from 1.93% last week, and cut their forecast for next year to 0.4% from 0.49% last week, the report showed.
The transportation prices are different for different break bulk
In the general international trade process, the price of transport according to different modes of transport, price is also different. International freight rates are divided into sea freight, air freight and rail freight.
The specific break bulk freight rate can also be subdivided. For example, rail freight can be divided into passenger freight and freight. Shipping rates are also divided into tramp rates and liner rates. Tramp rates are also affected by market supply and demand relations at that time, while liner transport costs are relatively fixed. Airfreight can be divided into general goods, designated goods and special goods, and the specific transportation price is also determined according to the weight of transportation, at the same time, even if the volume is small, the weight is also counted by weight, but if the opposite is large, small weight, also according to the specific volume to calculate.
The choice of international logistics, the quality of logistics will affect the seller's store score, but also affect customer satisfaction rate.
Logistics advantages of the break bulk in the destination country and region
In Eastern Europe, DHL has advantages in Romania, Bulgaria, Moldova, Hungary and other places while EMS has advantages in Greece, Russia, Turkey and other places. Western Europe, Northern Europe, southern Europe can use DHL international express, TNT international express, these two kinds of customs clearance capacity. TNT has a clear advantage in the Netherlands and Belgium.
For Canada, the United States and other American countries, FedEx, UPS and DHL are all suitable for their strong customs clearance capacity and fast time.
Applicable to Asia, South Korea, Japan, Thailand and other Southeast Asian countries DHL, FedEx. DHL and FedEx are time-saving, but THE price of DHL is higher. Indonesia also suggests USING DHL because it has a stronger customs clearance capacity.
In Oceania, DHL and UPS aging fast, with high prices; TNT and FedEx have lower prices but relatively few outlets. Particular attention should be paid to the "Made in China" label on the packaging of Australian products.
Middle East express ARAMEX, EMS for Middle East region. Commercial express in Africa is very expensive. In remote areas, IT is suggested to send EMS international express. EMS countries have the strongest customs clearance capacity. The air express break bulk can reach many countries and regions that commercial express and postal express cannot reach, so the wide range of break bulk transportation is its advantage.
Factors affecting the shipping price of break bulk
In the process of international transportation, there are many factors affecting the price of transportation, in addition to some fuel and labor costs, there are many important factors. For example, the nature of the break bulk, its own value and packaging form, as well as stowage factor and transporter's requirements for transportation, etc. There will be some fixed costs during the use of the ship, such as the ship's maintenance insurance and fuel consumption. There is also the change of supply and demand in the break bulk market. In the transport off-season, transport prices are relatively low, in the transport of the peak season, transport prices will be relatively high.
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