Our Scariest Brazilian Risk – Cargo Transport in Brazil: A White-Knuckle Ride

Scariest Risks

Scariest Risks
The statistics in the Brazilian cargo transport market are really scary. Many companies need to transport products within Brazil, whether import or export, but the risks are high for vehicles on Brazil’s roads, increasing the insurance and the goods carried value.

There were over R$ 675 million in claims last year including national and international transport.

Theft Claims

According to the São Paulo state Public Safety Department, the number of burglaries/thefts in the state in the first quarter of this year increased 7% compared to the same period in 2011. In 2011, in São Paulo state alone, there were 6,598 cases of cargo theft with a loss of R$ 295.85 million in declared values. In 2010, 12,850 incidents were recorded nationally, resulting in R$ 880 million in losses.

More Transport Worries

Other scary facts:

  • Only 172,897 km (10%) of the 1.7 million km of roads in Brazil are paved
  • The cost of cargo tracking technologies and property care preservation is very high
  • Despite the technological advances in risk management, recklessness and unprepared drivers increase the number of accidents on even well supervised roads
  • New Brazilian legislation establishes stops of 30 minutes rest for every four hours of work, and 11 hours rest for every 24 hours’ work, however, Brazilian highways are not appropriate or secure places for these stops to be made.
This post was part of the special feature about Our Scariest Risks, published October 29, 2012. The feature also included these other risks:

Brasil blogger Ricardo Del Castillo

Ricardo Del Castillo

Guest blogger Ricardo Del Castillo is the Corporate Risk Director of our Brazil office, responsible for all lines of Corporate Risk. Ricardo
graduated in economic science at São Paulo Catholic University and received his graduate degree in leadership and management at NOVA – Southeastern University (USA), with an extension in foreign trade (Customs).

Categories: Latin America, Supply-Chain Risk | Tags: ,

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