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Abstract

This work sought to explain the complex nature of the principles behind freight costs, focusing on certain dysfunctions and the limited efficiency of freight rate negotiation in the supply chains of the Brazilian agribusiness. Statistical and econometric techniques were used to identify the systematic behavior of the freight rates of the selected products and, where possible, this procedure was allied to other market evidence. It was possible to identify the influence of many variables on freight rates, such as distance, seasonality of production, the corridors along which the cargo is transported, its specific characteristics and the resulting demands made by customers. The fact that distance behaved as an explanatory variable, and was statistically significant in all of the models, means that mileage should be considered an important variable in the determination of freight rates. However, it is also necessary to consider that the significance of “distance” varies as much according to the detailed characteristics of the cargo as it does according to region. It was concluded that these variables make it possible both to develop negotiation strategies and to minimize conflicts in negotiations, as the costs are identified by the parties concerned.

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