AreaBrazil
Commodity GroupOilseeds, oils and meals
CommodityGrains, oilseeds
Date18/09/2018
Policy CategoryOther
Policy InstrumentTransportation policy
DescriptionRaised the countrywide minimum truck freight rates by 5 percent, following a rise in the market price of transport diesel.
NotesIn accordance with recently passed legislation authorizing the Brazilian Government to set minimum truck freight rates (see MPPU Aug.18), on 5 September, the countrys 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
