Yes promotes lecture on global logistics scenario and solutions for high prices

Specialist spoke about one of the main bottlenecks in agribusiness: logistics

Yes promoted this Thursday (03) the event “¡Adelante! – Recognizing the best of the year”. At this meeting, distributors from Latin America and Iberian countries who had the best commercial results in 2021 were recognized. which is normally the great 'bottleneck' of agribusiness: logistics.

According to the commercial director of Latin America at YesSinergy, Marcelo Fernandes Faria, the theme was chosen due to the impact of freight on the profitability of the business of partners and customers. “This is one of the great increases in the final cost of the product for those who import. The global scenario is not in its best phase and our proposal was to bring in a cargo agent so that, with the information available, we can help our distributors to make the best decision”, he reports.

To explain the subject, the company invited Pâmela Klein, a logistics specialist at the German company Schryver, with worldwide operations.  

Pâmela presented a scenario of challenges in which companies are currently inserted, in a world that has not yet finished its fight against the Covid-19 pandemic, and already has to face a war in Europe, between Russia and Ukraine. These were some of the factors cited by her that have made it extremely difficult to ship products between countries, whether by ship or even by air transport. “These are complicated situations that impact the final price, sales scenario and there are already serious consequences on the companies' final earnings when we approach the import and export of products”, quoted Pâmela Klein.

According to her, there are consequences at a macroeconomic level and explanations why the logistics flow is interrupted and there are high rates of maritime freight. “We can cite the changes in consumption and purchase habits triggered by the pandemic, including the rise of e-commerce, the increase in demand was greater than expected, which took transporters, ports and everyone by surprise, even registering the lack of workers”, he pointed out. “When there is a peak in demand, carriers are usually not prepared,” he said.

Due to the lack of an option for shipping by sea, Pâmela Klein also highlighted that some companies have started to send cargo by air transport. “But the sector also faced problems due to the pandemic, with borders being closed, lack of workers, lack of planes due to flight cancellations and the lack of cargo because it is a faster transport”, he said.

The solutions to improve this scenario, pointed out by Pâmela, were the purchase of new containers, the availability of extra ships, the estimated purchase of new ships, advanced vaccination against Covid and the availability of workers and, consequently, no ships stopped due to quarantine. . “We had the estimate that by 2023 the global logistics crisis would already have signs of improvement, but we are always subject to third-party actions, such as war, other variants of Covid, economic crises, among other factors”, he said.

The specialist added that planning is extremely necessary. “Planning at least three months before the actual shipment is essential, in addition to contracting all points for logistics, such as booking with the shipping company, booking with the carrier, removing containers a week before the deadline, following international news to plan a strategy in case you have something out of the ordinary and hire reliable partners willing to help with any problems,” he said. 

Also according to Pâmela, situations could be aggravated by the war between Russia and Ukraine in the future, in one or two months. “The Ukrainian government has already closed all ports and will not allow unloading and loading until the conflicts are over. Some logistics companies have reported that, due to security and political pressure, they will not act for Russia or Ukraine until the conflict comes to an end. They are unloading the cargo in other countries and the importers will have to bring it to the final destination”, he said. “The problems we already face could get worse, as we will have containers and ships stopped in conflict seas and we will have bigger ones broken”, he pointed out.

With regard to third parties, Pamela stressed that there is always a dependency. “Something around always affects us and, therefore, I believe that we will not go back to the same freight prices as in 2019. But if in five years, if everything is resolved, without war or pandemic, even so, the probability is that it will continue in rising price trend,” he said. “So the keyword is planning. In the world economy, one country depends on the other and this logistical crisis can take a long time to normalize”, he concluded.

Faria believes that the proposal for this type of action is part of the company's initiative to support its partners and customers. “We know the costs and difficulties that agribusiness faces when it comes to logistics. Bringing light to this issue opens the possibility of finding other ways to reduce prices and terms, resulting in better results for our business chain”, he concludes.

Watch Pamela's lecture in full: https://www.youtube.com/watch?v=pERD4xZSdkQ

About Yes

Yes, a biotechnology company in animal nutrition, develops and produces nutritional additives such as mycotoxin adsorbents, prebiotics, organic minerals, blends and yeast derivatives in order to improve the performance and health of animals. All products comply with the strictest laws of world markets, such as the United States and Europe. Founded in 2008, Yes has a head office in Campinas/SP, four production plants, one in Lucélia/SP, one in Novo Horizonte/SP, one in Borá/SP and one in Narandiba/SP, a Logistics and Distribution in Lucélia/SP, another in Cascavel/PR in addition to the opening, in 2020, of a new CD located in Mexico. It operates throughout Brazil, in addition to exporting to more than 42 countries, being present in the Americas, Europe, Africa, Oceania and Asia. Since 2016, the company has been part of the portfolio of investees of the investment fund Aqua Capital.

More information: www.yessinergy.com.