Trade and markets
 

Detail

Area
Brazil
Commodity Group
Oilseeds, oils and meals
Commodity
Grains, oilseeds
Date
18/09/2018
Policy Category
Other
Policy Instrument
Transportation policy
Description
Raised the countrywide minimum truck freight rates by 5 percent, following a rise in the market price of transport diesel.
Notes
In accordance with recently passed legislation authorizing the Brazilian Government to set minimum truck freight rates (see MPPU Aug.’18), on 5 September, the country’s National Transport Agency (ANTT) raised nationwide minimum freight prices by 5 percent on average – in response to a 13 percent rise in the price of diesel. Reportedly, after the move, loading of grains and oilseeds at ports has slowed further, given the increase in costs faced by farmers and exporters. Trade sources estimate that the increase in rates has raised average freight costs per tonne of grain from BR 225 (USD 60.57) to BR 236 (USD 63.53). According to the media, confronted with higher road transportation costs, a group of farmers in Mato Grosso state is considering to help fund the construction of the proposed Grain Railroad (Ferrogr