News

A new adjustment of the reference freight rates was made official to highlight the loss of competitiveness of Argentine agriculture

Grains, Cereal & Legumes
Argentina
Supply Chain Management
Published Apr 17, 2024

Tridge summary

On March 13, an agreement was reached in Argentina involving transporters, cargo providers, and mediators to adjust the reference rate for transportation services, setting the freight cost for 400 kilometers at $39,048/ton. This adjustment, published in the Official Gazette, significantly increases the transportation cost of corn to 25.5% of its gross value, up from 19.2% the previous year, thereby reducing the competitiveness of Argentine agricultural companies. This issue is compounded by the lack of price adjustments in agricultural goods and services and a decrease in international grain prices. Despite this, automotive freight transportation in Argentina remains a deregulated activity, with the state playing a limited role, and the rates being indicative, allowing for negotiation between parties.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After a debate between transporters and representatives of cargo providers, with officials from the Undersecretariat of Automotive Transportation serving as mediators, a consensus was reached on March 13 to adjust the value of the reference rate per kilometer for transportation services at the national level. national. With the new scheme – published today in the Official Gazette – for freight of 400 kilometers the new reference rate became $39,048/ton (US$44.0/ton with the current BNA selling exchange rate). In this way, with the current average prices of corn available in Rosario (153,000 $/ton), the indicative freight to transport the cereal from Río Cuarto (Córdoba) to the Rosario port terminals would be equivalent to 25.5% of the gross value of the corn . A year ago, the proportion of the reference freight rate for a distance of 400 kilometers represented 19.2% of the gross value of corn, which shows a significant loss of competitiveness in the period for Argentine ...
Source: Agromeat
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