Furniture industry voices its concern for logistic cost

Sindmóveis/Movergs Logistics Commitee meets with member companies to discuss the advantages of shipping within the Brazilian coastal waters as an alternative to road freight
 
With the growing demand for furniture in northern and northeastern Brazil, many furniture manufacturers in Bento Gonçalves have these regions as their key destinations within the country. However, the long distance between  customers and factories is a crucial logistics issue to maintain the competitive edge of the sector. The average increase of 50% in road freight after the new Law for Drivers was passed led companies to seek alternatives to a less expensive means of shipment. This week, the Logistics Committee of the Furniture Industry Association of Bento Gonçalves (Sindmóveis) and the Furniture Industry Association of the State of Rio Grande do Sul (MOVERGS) held a meeting with the staff of the Rio Grande Container Terminal (Tecon) and representatives of the local industry to promote their cabotage services – shipping within the Brazilian coastal waters.
 
Although cabotage services are unknown to most furniture companies located in the furniture center in Bento Gonçalves, they may represent an alternative for manufacturers. Currently, shipping companies that depart from Rio Grande have lines to Manaus and Recife, taking approximately 20 days from port to port. This transport period is reasonable, considering that trucks used to take from15 to 20 days before the Law of Drivers was passed restricting working hours and extending the delivery time.  In terms of cost,  maritime transport along the Brazilian coast can be up to 40% cheaper than road transport, with a lower risk of both damage or cargo theft. Additionally, it reduces environmental impacts, because fewer pollutants are emitted.
 
On the other hand, the finance advantages of this service are best perceived in the case of full container loads, which does not correspond to the reality of the furniture sector in Bento Gonçalves because it works with small lots generally produced after sales. To counteract this scenario, shipping companies offer split delivery services or brokerage service to separate and give the final destination to the load. “The furniture industry of Bento Gonçalves has reached a level of technology and quality that places logistics as a competitive advantage. In addition to cost reduction, the main advantage provided by the cabotage system is quality service,” says the commercial director of Tecon, Thierry Rios.