CREATING VALUE THROUGH CABOTAGE USE IN BRAZIL

Abstract

The cabotage industry in has shown a steady increase in container movements, thus leaving a traditionally secondary role to occupy a strengthened market position. This study aimed to identify the advantages, besides just reduction of freight cost, that cabotage offers to its users. Based on a qualitative research with 21 interviews, the results provide evidence of the main benefits perceived by respondents: capacity to transport large volumes; having stock in transit; use of containers for storage or anticipation of sales in order to optimize their own or rented spaces; improved turn times for fleet, whether owned or partner trucks; load-flow capacity in regions with difficult access; punctuality of deliveries; competitive lead time for cargo with irregular/out-of-gauge dimensions; ability to perform last mile delivery with improved predictability; customer possibility of buying a rate and offering to his customer at higher price.