May 30, 2018

Truck Driver Strike in Brazil had a Huge Impact on the Economy

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

The truck driver strike in Brazil had more "teeth" than anyone had imagined. It started on Monday, May 21st, and it got progressively worse. Over this past weekend, sectors of the Brazilian economy essentially shut down. Below are some of the impacts that were felt especially by the agricultural sector:

Some of the demands of the truckers included: permanently lowering the price of diesel fuel (not just a temporary reduction), elimination of some of the taxes on diesel fuel, increase the minimum freight rates, and the eliminate toll charges for suspended axils of empty trucks (the amount of the toll depends on the number of axils and the toll is charged even if an axil is suspended due to the truck being empty). Adjusting the price of diesel on a monthly basis not a daily basis.

The Brazilian Congress approved a package of concessions on Monday including the following: