Mar 18, 2015

Renewal of Trucker Strike in Brazil will depend on Negotiations

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Various transportation organizations met with the Minister of Agriculture last week in Sao Paulo to discuss among other things a minimum freight rate for various regions of Brazil. They have another meeting scheduled in Brasilia on March 19th to potentially hammer out some final numbers. In the meantime, the transportation companies have stated that there is no need to discuss the price of diesel fuel, at least not yet. They stated that their strategy for negotiations concerning fuel prices will depend on the outcome of the discussion surrounding freight rates.

Some of the more aggressive trucker organizations in Rio Grande do Sul and Santa Catarina have expressed the possibility of renewing the strike even before the end of the negotiations, but truckers in other parts of the country have not expressed a similar position. Therefore, I think there is a low probability of another nationwide trucker strike in the near future, although I would not rule out some regional work stoppages.