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Apr 27, 2015

TRUCKERS' STRIKE & BLOCKADE * Brazil:

* Sao Paulo - Brazilian truck drivers threaten new strike/blockades this week

-- It is possible that the highways of Brazil could be blocked once again by protesting truck drivers as early as this week. The truck drivers in Brazil have announced their plans for a new nationwide strike/blockade if the federal government does not release an acceptable minimal freight rate and reductions in diesel fuel prices by Wednesday, April 22. They are demanding a combination of a minimal freight rates and reduced fuel prices that will at least cover their costs, which they contend is not possible with the current rate structure... These are the same two demands that led to a crippling strike/blockade at the end of February. The 10-14 day strike only ended when the government made some concessions concerning the new truck driver law and toll payments as well as entering into discussions concerning the price of diesel fuel and freight rates... As you would expect, the truckers and the shippers are at opposite sides of this discussion. The truckers want a guaranteed minimum rate and the shippers say the freight rate should be based on supply and demand. For example, the truckers contend that to cover their cost from the city of Sarandi in Rio Grande do Sul to the Port of Rio Grande, which is a distance of 606 kilometers, they need a rate of R$ 103.83 per ton. For a cargo of 31 tons, the charge would be R$ 3,218. The truckers want these type of minimum rates established for the different regions of the country... Ironically, concessions made by the government concerning the truck driver law, which took effect last week, will actually increase the number of trucks on the road with the potential to drive down freight rates even more. The modified law allows drivers to be behind the wheel for longer periods of time with fewer mandatory breaks which effectively increases the time the truck is on the road... 
SP, Brazil - Soybeans & Corn Advisor - April 20, 2015

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