Brazil revises minimum freight rates

Brazil's transport regulator ANTT updated national minimum freight rates following an outcry from the agricultural sector and industry, which argued that rates published on 30 May made transport costs prohibitively expensive.

Among the main changes is flexibility to allow for negotiation between the client and the trucker over backhaul freight rates. The new pricing system also uses a broader range of rates, based on the distance traveled, number of axles of the vehicle and the product being transported.

The minimum freight rates were initially established as part of a package of concessions to truck drivers who went on strike on 21 May, principally over high diesel prices. After the truckers blocked highways across the country, causing fuel and food shortages, the government issued the minimum rates and slashed diesel prices.

But leading agricultural groups met with the agriculture and transport ministers on 5 June to convey that the new rates had driven up their transport costs by as much as 150pc and that the sector would deteriorate into chaos if the minimum rates were not revised.

Agriculture minister Blairo Maggi said the initial rates were excessive and were hastily issued to try to persuade the truckers to end their 11-day strike.