Characterization of the highway freight market for agricultural products

The Brazilian highway freight market is subject to no sort of government control, meaning that the prices are formed through free negotiation between supply and demand of the transport service. Carriers have to be updated on every variable incorporated in costs to be fit for negotiating with demanders. These demanders, except under certain very specific circumstances, have had higher negotiation power and exerted quite strong pressure to obtain freight discounts. Taking into consideration the accomplishment of the quality of freight information, for both supply and demand sides of the transportation service, data for selected agricultural commodities were collected, as well as the identification of the main characteristics of the road haulage. The difference in the freight values for each commodity was noted, as was the distinct freight market structure for grains (sugar, corn, soybeans and soybean meal), which has been more spread out and perhaps less professional compared with the transportation market for liquids, such as orange juice and soybean oil.