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April 6, 2020

Only Minor Problems being Reported for Brazilian Logistics

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

There continue to be localized problems in Brazil in the transportation and processing of agricultural products, but the federal government and companies appear to have been largely successful in keeping the disruptions to a minimum, at least for now,

The number of trucks on Brazilian highways is lower than normal, but there has not been any major roadblocks. There have been some problems with gas stations, restaurants, and other basic services being closed along major highways in Brazil causing some truckers to prefer short hauls over long hauls. The Brazilian Association of Vegetable Oil Industries (Abiove) announced last week that they would provide meal kits for truck drivers on the nation's highways where restaurants or truck stops may be closed.

The Brazilian Minister of Agriculture and the National Land Transportation Agency (ANTT) have authorized the production, processing, and transportation of food, grain, fruits, vegetables, etc. to operate as normally as possible because they are essential services for the country.

ANTT has postponed for 90 to 120 days the renewal of licenses and registrations allowing more flexibility for trucks to stay on the highways. Trucks involved in accidents now have 24 hours to report the accident to authorities. The renewal of licenses for railroad operations and railroad engineers has also been postponed for 120 days.

Brazilian ports continue to load grain but operations have been slowed due to extra health precautions which has resulted in increased demurrage costs. There have been reports of some mayors shutting down public transportation which has resulted in difficulties getting workers to their respective work place.