🚛 Logistical logjam

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Brazil’s bumper harvest strains already overburdened logistics network

Brazil’s National Supply Company (Conab) projects a grain output of 328.3 million tons this year — a 10% increase from 2024 and all-time high.

Surpassing previous records is hardly novel. With the exception of last year’s climate-driven setback, every year has been a record-setting year, said Olivier Girard, a partner at the logistics consultancy Macroinfra. “And every year we’re scrambling to catch up.”

The country’s outdated transportation infrastructure remains a long-standing drag on its economy. Brazil relies heavily on road freight, while its rail and waterway networks remain underdeveloped. The results are higher transportation costs and reduced competitiveness for farmers, Girard told The Brazilian Report. The strain is also evident at ports, which are struggling to keep pace with surging exports.

Port capacity for bulk grain shipments has already surpassed 85% — a critical threshold for operational safety — and could reach full capacity by 2028, according to a Macroinfra study based on future harvest projections. Without significant new investment, Brazil risks a logistical collapse in the coming years.

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