Why Are Brazil's Logistics Costs So High?

Brazil spends 15.6% of its GDP on total logistics — storage, inventory, and freight combined. The OECD average is just 8.4%. Freight transport alone accounts for 9% of GDP, compared with 5.7% in the United States, according to the Instituto de Logística e Supply Chain (Ilos).

How Dependent Is Brazil on Road Transport?

Trucks carry 63% of all cargo in Brazil. In the United States that share is 50%; in China, 29%; and in the European Union, just 24%. The inefficiency is stark: a single locomotive pulls 50 rail wagons, each carrying the equivalent of three heavy trucks worth of soybeans.

What Would Multimodal Integration Actually Save?

Pedro Moreira, president of Abralog, estimates that a more balanced transport mix could cut logistics costs by two percentage points of GDP — a saving of R$250 billion per year. A July 2025 Ilos survey of Brazil's 100 largest industrial, agribusiness, and retail companies found that 25% plan to switch transport modes immediately, but are held back by lack of alternative infrastructure.

What Is the Government Planning?

The federal government's National Logistics Plan (PNL 2050) envisages 31 priority logistics corridors combining road, rail, waterway, and port infrastructure. The Ministry of Transport's Gabriela Monteiro Avelino says these corridors take a fully multimodal approach. The plan is expected to be finalised by August 2025.

Key Facts:
  • Brazil's freight costs: 9% of GDP vs. 5.7% in the US (Ilos)
  • Total logistics costs: 15.6% of GDP vs. 8.4% OECD average
  • 63% of Brazilian cargo moves by truck
  • Potential saving: R$250 billion/year with multimodal integration
  • 25% of top 100 companies want to switch modes immediately
  • 31 priority logistics corridors planned under PNL 2050