January 27, 2021

Brazil truckers' groups to strike, may affect agricultural commodities trade

Brazilian truckers' associations and unions may hold a strike on February 1, which could badly affect the country's economy still trying to recover from the effects of the COVID-19 pandemic, Reuters reported.

The strike will be led by the National Association of Autonomous Transporters of Brazil (ANTB) and joined by the National Confederation of Transport and Logistics Workers (CNTTL), and Federação Única dos Petroleiros (FUP).

The strike is being held to protest the minimum freight price set by the government, which is too low. The minimum freight prices were only authorised to rise by 2.51%, not enough to offset increased costs like the replacement of auto parts.

Carlos Alberto Litti Dahmer, a CNTTL spokesman, said there is a lack of support by the government to improve truckers' working conditions.

In a statement, the FUP said the rise in fuel prices is "abusive".

A similar strike held in May 2018 crippled Brazil's economy, as the biggest exporter of agricultural commodities in the world for soybeans and poultry were unable to transport goods to ports or foods to supermarkets. The strike also caused millions of chickens to be culled as farmers were unable to receive feed.

Then Brazil President Michel Temer gave in to the truckers' demands and agreed to establish a minimum freight table.

- Reuters