If your company keeps up with the news present in cargo transport, you’ve probably heard about the term cabotage. However, if you do not already know, in summary, we can say that, as a way of sending, it is a movement of deliveries between the ports of the same country.
With this in mind, Polyexcel has prepared an article to better explain the advantages and disadvantages of cabotage, how this operation works, and what its benefits are. Keep up to learn more details!
What is cabotage?
Cabotage is a concept that refers to the movement of cargo across the sea extent between local ports. In addition, it goes beyond the ends of the sea, as it can travel through rivers and lakes. It is worth remembering that this system can pass through ports in different countries.
Considered one of the most important modals, it serves solid and liquid bulk loads, as the raw material for chemical industries, for example. It is also an excellent system for transporting oil and derivatives, relieving platforms or fuel movements.
How does cabotage work?
As we saw briefly above, cabotage transport takes place at sea, and its main focus is the shipment of cargo carried out between ports within the same country. It presents several advantages for various companies, customers, business partners and even society in general, helping to unburden the highways.
Nevertheless, transport faces some challenges in achieving its full potential, with legislation being the main one among them. This is because, in addition to promoting bureaucracy in cargo from abroad, it only allows the process to be carried out with cabotage shipping.
How does cabotage help a company’s results?
Cabotage services can provide several advantages for companies and others involved in the supply chain, bringing satisfactory results. Below, check out some of the top ones.
Savings on shipping cost
It is estimated that maritime cabotage costs up to 30% lower when compared to road transport. This makes products cheaper for customers, increasing the company’s profitability and competitiveness. After all, by lowering costs, the business is better positioned in the market.
However, it is important to remember that this system has longer deadlines for the release of loads because of the bureaucracy involved in the whole process. Therefore, we can conclude that if the receipt window is large, it is worth having this option to ship the goods.
Less risk of theft and loss
One of the biggest advantages that companies gain by betting on this method is the decrease in the risks of theft, theft and loss. In this way, it is possible to reduce losses arising from actions that involve the cost of the product, the sending of a new one and the transport to deliver it.
This benefit also helps to generate savings for the company, which in turn manages to generate insums for new investments in core business or improvements in business processes.
Ability to carry larger volumes
The ability to carry large volumes is another advantage of cabotage. After all, with the spaces available on the ship, the company can save on sending shipments, since it is possible to send several loads at once.
The same situation does not happen in the road modal due to factors such as weight capacity and vehicle space. It is worth remembering that there is also the restriction of large trucks in urban centers.
Large navigable extension
Brazil, where our headquarter is, has about 8,000 kilometers of navigable coastline and more than 40,000 kilometers of roads with potential for navigation. In addition, the country has more than 30 scattered ports, which extend from North to South.
In this way, it is possible to send the goods from one end of Brazil, through the same modal system, providing greater reach. In addition, if cabotage shipping companies exploit this potential, there is the possibility of unburdening highways, making them safer.
Lower environmental impact
With the concept of sustainability on the rise, investing in solutions that reduce the damage caused by pollution is a great way to boost the company’s image. The good news is that modals made in ports generate much less pollution to the environment than other types.
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