Logistics & Shipping

Moving sugar from origin to destination is critical. Logistics costs can make or break a trade.

Supply Chain

Mill → Inland Transport → Export Terminal →
Vessel → Ocean Transit → Import Terminal →
Inland Transport → Buyer

Cost Components

Component	Share
Ocean Freight	40-60%
Port Handling	15-25%
Inland Transport	10-20%
Storage	5-10%
Insurance	2-5%

Example: Santos → Jeddah

Component	USD/MT
Mill to Santos (Rail)	8
Port Handling (Load)	12
Ocean Freight	32
Insurance	3
Discharge Handling	10
Documentation	2
Total	67

Inland Transport

Brazil

Mode	Share	Cost
Rail	30%	$0.03-0.05/MT/km
Road	65%	$0.08-0.12/MT/km
Waterway	5%	$0.02-0.03/MT/km

Key Rail: Rumo (largest, to Santos)

Thailand

Route	Mode	Cost
Northeast → Laem Chabang	Truck	$15-20/MT
Central → Laem Chabang	Truck	$8-12/MT

Port Operations

Loading Process

Day 0: Vessel arrives
Day 1: Berthing, inspection
Day 2-5: Loading operations
Day 6: Final survey, departure

Loading Rates

Term	Definition
SHINC	Sundays, Holidays Included
SHEX	Sundays, Holidays Excepted
WWWD	Weather Working Days
CQD	Customary Quick Dispatch

Typical: Santos 12,000-15,000 MT/day WWWD SHEX

Demurrage & Dispatch

Term	Description
Laytime	Allowed loading time
Demurrage	Penalty for exceeding
Dispatch	Reward for faster

Demurrage Rate: $15,000-40,000/day

Ocean Freight

Rate Factors

Factor	Impact
Distance	Longer = higher
Vessel Size	Larger = lower $/MT
Fuel Costs	Volatile
Demand	Seasonal

Route Rates (Typical)

Route	Vessel	Rate
Santos → Far East	Panamax	$40-60/MT
Santos → Med	Supramax	$25-40/MT
Santos → MENA	Panamax	$30-45/MT
Thai → China	Handymax	$15-25/MT

Freight Indices

Index	Coverage
Baltic Dry	Dry bulk
Baltic Supramax	50,000 DWT
Baltic Panamax	82,000 DWT

Vessel Types

Type	DWT Range
Handysize	15-35,000
Handymax	35-50,000
Supramax	50-60,000
Panamax	60-80,000

Sugar typically ships Handymax to Panamax.

Charter Types

Type	Description
Voyage	Fixed rate/MT
Time	Daily rate + bunkers
COA	Volume commitment
Spot	Single voyage

Key Ports

Brazil Exports

Port	Capacity
Santos	30+ MMT
Paranaguá	6 MMT
São Sebastião	4 MMT
Maceió	2 MMT

Thailand Exports

Port	Capacity
Laem Chabang	5 MMT
Bangkok	2 MMT

Australia Exports

Port	Capacity
Townsville	3 MMT
Mackay	2 MMT

Major Import Ports

Port	Capacity
Jeddah	3 MMT
Dubai	2.5 MMT
Surabaya	2 MMT

Storage

Requirements

Parameter	Raw	White
Temperature	<30°C	<25°C
Humidity	<60%	<55%
Ventilation	Good	Excellent

Storage Costs

Location	Cost/MT/month
Santos	$3-5
Singapore	$8-12
Dubai	$6-10
Rotterdam	$10-15

Storage Risks

Risk	Cause	Prevention
Caking	Moisture	Climate control
Darkening	Heat	Cool storage
Infestation	Pests	Fumigation
Weight Loss	Evaporation	Sealing

Quality Preservation

Degradation Points

Bagging/Loading: Contamination
Inland Transport: Moisture, damage
Terminal Storage: Caking, pests
Vessel Hold: Condensation
Discharge: Contamination

Vessel Requirements

Requirement	Standard
Previous Cargo	No toxic/odorous
Cleanliness	Hospital/grain clean
Dryness	Bilges dry
Hatch Covers	Watertight

Surveyors

Company	Services
SGS	Full inspection
Bureau Veritas	Quality, quantity
Intertek	Testing
Control Union	Agri-focused

Documentation

Shipping Documents

Document	Purpose
Bill of Lading	Title
Quality Certificate	Specs
Weight Certificate	Quantity
Certificate of Origin	Source
Phytosanitary	Health
Fumigation Cert	Treatment

Bill of Lading Types

Type	Description
Clean	No damage noted
Claused	Exceptions noted
On-board	Cargo loaded
Negotiable	Transferable

Cost Optimization

Strategy	Saving
Larger vessels	$5-10/MT
Rail vs truck	$3-5/MT
Efficient terminals	$2-3/MT
COA freight	$3-5/MT
Minimize storage	$1-2/MT

Key Takeaways

Logistics = margin — Efficient ops protect profit
Plan ahead — Vessel nomination matters
Quality at risk — Sugar degrades
Document carefully — Errors cost money
Know your ports — Each has different capability