Loading sugar in Brazil

While the early history of sugar production in Brazil is inextricably associated with slavery and intensive labour, the industry was modernised from the turn of the century, making the country the world’s top producer and exporter of this millennial commodity. The country is the second producer of ethanol, only behind the United States, and has the largest automotive fleet running on biofuels.

Last year, Brazil produced over 41 million metric tons of sugar, mostly exported, yielding an all-time export record. Despite an estimated reduction for 2020/21, sugar production and exports are expected to continue at very high levels for years to come.  

Considering the high volumes of sugar shipments departing from Brazil each year, the incidence of significant cargo damage or shortage claims is relatively low. However, because most bulk terminals are only designed to load cargo, removing large amounts of sugar spoiled during loading can often be rather challenging and expensive.

To help our clients and associates doing business in the country better understand why the traditional commodity stands out as one of the vital agriproducts that help boost the Brazilian economy – and keep ports busy –, we have condensed this guide with comprehensive information about the national sugar industry, the local practices and regulations.

Firstly, we briefly walk through the history of sugarcane in Brazil, its production, export, and port handling volumes, along with statistical information. We then summarise the applicable national and international grading standards and legal framework for quantifying, loading, and carrying sugar cargoes and allocating liabilities among the various stakeholders.

Following the guidelines of international authorities and leading P&I clubs, we have put together some practical advice on the main risks of loading sugar in Brazil and best practices for carrying the sweet commodity preventing, or at least minimising, cargo losses.

We hope this guide will be a valuable source of reference and practical information, and we welcome your comments and suggestions for corrections and improvements in a future edition.

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