Dealing with operations that involve the international market certainly requires dynamism and constant updates to minimize impacts on your business, especially when it comes to the context of post-pandemic foreign trade.
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This is because the pandemic triggered in 2020 by Covid-19 has made clear the fragility in every global scenario in which the world has shown itself unprepared to deal with the difficulties faced until then.
After 3 years of the beginning of the pandemic, the scenario is still uncertain.
The blockade of the Suez Canal and the war between Ukraine and Russia, for example, are some of the other challenges faced. These were scenarios that certainly the market needed to readjust and seek alternatives to remain competitive.
Not to mention the oscillation of the dollar and international sea freight, the latter of which suffered an increase of up to 500% in the price of some routes to Brazil.
Therefore, risk management is one of the most important topics today, as it assists in decision making, as well as mitigating extra costs and delays through the predictability of possible risks.
Brazilian trade balance in a post-pandemic scenario
The Brazilian market has been showing a surplus in recent years, after all, with the increase of the dollar the scenario favored exports.
The year 2022 closed with a positive balance in the trade balance, exports totaled US$ 335 billion and imports US$ 272.7 billion.
According to data released by the Ministry of Development, Industry, Trade and Services (MDIC), imports and exports until April this year showed a reduction compared to the same period from January to April 2022.
While exports totaled US$ 83,686.4 million, in 2022 they already totaled US$ 101,685.2 million.
Imports decreased from US$ 81,275.2 to US$ 64,490.5 million in the first quarter of 2023.
In addition to external factors caused by the global economy, the impact on foreign trade post-pandemic this year is also due to a change of government. It is natural for the market to wait for decisions that can directly impact the company’s strategies.
Highlights of foreign trade operations in 2021
According to information from ComexStat, exports in 2021 were mainly represented by iron ores and their concentrates, totaling US$ 44.7 billion. In second place was soybeans, with US$ 38.7 billion, followed by crude oil with US$ 30.7 billion.
The destinations were mainly to China, the United States and Argentina.
In imports, the main product was fertilizers or chemical fertilizers, with US$ 13.4 billion, followed by petroleum fuel oils or bituminous minerals (except crude oils), with US$ 12.1 billion, and other products of the transformation industry with US$ 8.9 billion.
Brazil’s top suppliers in 2021 were represented in order of importance by China, the United States, Argentina, Germany and India.
Highlights of foreign trade operations in 2022
Unlike 2021, soybeans were the main product exported in 2022. The grain totaled US$ 46.6 billion, representing 14%, followed by crude oil with US$ 42.6 billion.
Iron ores and their concentrates totaled US$ 28.9 billion in exports.
The import of fertilizers or chemical fertilizers was the main imported product with US$ 24.7 billion, representing 9.1% of imports. Petroleum fuel oils or bituminous minerals (except crude oils) is the second most imported, with 8.6% and US$ 23.5 billion.
In relation to the main countries, the ones mentioned in 2021 remain both in import and export.
The pandemic is over, but what’s next?
After certain restrictive measures and the lockdown adopted worldwide and especially by the main markets, post-pandemic foreign trade still faces volatile scenarios impacted by economic swings and armed conflicts.
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Currently, for Brazil, definitions related to politics is one of the aspects that most impact the market with regard to new investments.
The adaptation to new work models and strategic planning are points that certainly affected logistics operations. Thus, being aware of new changes is essential to minimize delays and extra costs.
Challenges for foreign trade post-pandemic
Uncertainties in the global market have increased further in recent years. The pandemic and the war between Russia and Ukraine have destabilized markets mainly in Europe.
The fluctuation of freight is one of the current challenges, any change in the market can directly impact logistics, as well as logistics accidents, weather effects and equipment shortages.
The effects of the exchange rate, which despite favoring exports, harm imports, since it can reduce the purchasing power of the country.
The famous Brazil cost is still an obstacle to Brazilian exports, although the country stands out in the supply of commodities and with low participation in technologies.
The customs bureaucracy still represents delays and expenses to foreign trade processes. Port storages, surcharges such as demurrage and production delays, for example, are consequences of customs clearance processes that are still quite bureaucratic.
In short, it is essential that the foreign trade professional is constantly updating learning and applying new market practices that can assist in operational and financial gains.
New trends for foreign trade post-pandemic
The IRS has been bringing updates focused on reducing bureaucracy in foreign trade processes.
The Single Foreign Trade Portal aims to establish a single hub between companies operating in the international market and the government.
New procedures with the Product Catalog should provide greater agility in customs clearances. Tests are already taking place and full implementation is expected in 2024.
The use of new technologies such as process automation is something relevant and impacts any operation. Through Artificial Intelligence you can make assertive decisions that improve the company’s performance.
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Alternatives, such as Business Intelligence (BI), provide structured strategic data for analysis and historical comparisons in an agile way.
The certification of the Authorized Economic Operator (AEO) program is provided by the Federal Revenue Service of Brazil (RFB) after the fulfillment of required requirements and through effective risk management.
In this case, importer, exporter or some service providers are considered strategic partners of RFB and enjoy benefits, such as the reduction in clearance deadlines.
Find the best international shipping deals with Cheap2ship
To be sure, international logistics is one of the most uncertain stages of foreign trade post-pandemic. However, there are efficient ways to choose the best options on the market with ideal rates and conditions for your business.
The Cheap2ship platform offers all the management of your international freight through a BID system with detailing in one place, eliminating the incessant email exchanges and ensuring more agility in your negotiations.
Your operations will have more transparency, security and will be available in one place for online access from anywhere in the world. In addition to facilitating the operational procedures of your team, it is possible to negotiate the best prices.
Quotes can be made for any modal and the system is easy to implement, after all, our team will provide all the necessary support and training.
Contact us and make your international freight management in an innovative and safe way.
