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Logistics in Brazil: Mastering transport challenges in South America’s largest economy

With a GDP of USD 2.3 trillion, Brazil is South America’s economic powerhouse and a vital hub for international trade.2 Yet, logistics in Brazil is far from simple: vast distances, fragmented infrastructure, seasonal extremes and complex customs procedures make transport in Brazil a challenge. How can companies successfully navigate these hurdles while unlocking the potential of this vibrant economy?

View from the aeroplane over the mountains and the coast of Brazil
View from the aeroplane over the mountains and the coast of Brazil

Brazil’s geography and infrastructure landscape

Brazil spans 8.5 million square kilometers, covering five climate zones from the Amazon rainforest to industrial megacities such as São Paulo and Rio de Janeiro.1 This geographic diversity creates great opportunities but also imbalances in logistics in Brazil. While coastal regions boast modern ports, inland areas often struggle with limited connectivity. As the backbone of Brazil's economy, the logistics sector is directly influenced by geographic and infrastructural contrasts, and so the state of infrastructure in Brazil plays a decisive role in shaping overall supply chain efficiency.

Key facts at a glance:

  • Population: 216 million1
  • Roads: 1.7 million km (only 12 percent paved)3
  • Rail: ~30,000 km, concentrated in few regions3
  • GDP: USD 2.3 trillion2

Roads and rail – The backbone of transport in Brazil

More than 60 percent of goods in Brazil are transported by road.3 However, with just a small share of paved roads, freight is vulnerable to weather-related delays, particularly during the rainy season. Urban congestion in São Paulo and Rio further intensifies delivery challenges.

Rail transport, in contrast, is primarily used for bulk commodities like soybeans and iron ore.3 The existing 30,000 kilometers network is significant but fragmented and not well integrated with other modes. The untapped potential of the infrastructure in Brazil lies in multimodal solutions that combine road, rail and inland waterways, easing pressure on overloaded routes. This integration is one of the key priorities for strengthening logistics in Brazil.

Ports and airports – Anchors of trade

Over 95 percent of Brazil’s export volumes move by sea. The Port of Santos plays a central role, handling around 30 percent of all trade. Its constantly increasing importance was underlined in 2024, when volumes climbed to 5.4 million TEUs – the first time ever above the 5 million mark and a 14.7% increase compared to 2023. Other important gateways include Itajaí, Rio de Janeiro and Paranaguá, which focus strongly on agricultural exports.4

Air freight is smaller in volume but indispensable for high-value cargo such as pharmaceuticals, electronics and automotive parts. São Paulo’s Guarulhos Airport processed more than 330,000 tons of international cargo in 2023, making it a key hub for time-sensitive shipments and thus a critical part of modern logistics in Brazil.5 These flows are not only essential for exports but also support the import of Brazil, especially when it comes to high-value goods like electronics and pharmaceuticals.

Customs in Brazil – Complex but improving

Customs in Brazil and its procedures are often cited as one of the country’s biggest bottlenecks. Import tariffs average 13.5 percent, documentation is multi-layered and clearance takes an average of 4.6 days.6

Nevertheless, modernization is underway. Digital customs systems are reducing bureaucracy, and Mercosur membership eases regional trade flows with Argentina, Paraguay and Uruguay.6 These improvements are closely linked to broader investments in infrastructure in Brazil, while practical experience on the ground remains essential for companies to successfully navigate the complex framework of customs in Brazil.​​​​​​

Main trade flows

  • Brazil’s exports: iron ore, soybeans, crude oil, sugar7
  • Brazil’s imports: machinery, chemicals, electronics7

Logistics challenges and strategies for success

From the sheer size of the country to seasonal extremes and urban congestion, logistics in Brazil demand careful planning. The greatest challenges can be grouped as follows:

  • Long transport distances, e.g. São Paulo to Manaus spans more than 3,900 kilometers
  • Seasonal weather extremes such as flooding in the North and droughts in the South1
  • Heavy congestion in major metropolitan areas1
  • Uneven infrastructure in Brazil between coastal and inland regions3

To overcome these barriers, successful strategies include multimodal integration, digital visibility tools and the support of experienced local partners. Public-private concessions in road and port projects are already helping to modernize the infrastructure of Brazil and open up new opportunities for logistics providers.4

Outlook: Unlocking Brazil’s logistics potential

The IMF expects Brazil’s economy to grow by 2.1 percent in 2025, fueled by exports and foreign investment.2 For companies, this means opportunities – provided they can turn structural challenges into competitive advantages through clever solutions for logistics in Brazil. This will depend not only on managing commodity flows but also on the efficiency of imports in Brazil, which plays a vital role in supplying domestic industries with advanced technology and components.7

Rhenus supports this with a strong local presence in São Paulo, Campinas, Guarulhos, Itajaí and Belo Horizonte. Our services cover the full supply chain – from air and ocean freight to road transport, warehousing, project logistics and customs clearance. With tailored solutions for industries such as automotive, pharma, electronics, renewables and trading, and by combining global standards with local know-how, we ensure seamless operations across the evolving and lucrative infrastructure in Brazil.

Statue of Jesus overlooking Rio de Janeiro and Botafogo Bay

Looking for expert support with logistics in Brazil?

Rhenus offers certified services and local experience. From customs to multimodal solutions, we help you turn logistics challenges into opportunities.

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