Update on Brazil's truck strike

[luisvieira]

The Brazilian government announced that it will hold a meeting with some leaders of the truckers strike, but they say that the main complaint of the truckers (diesel costs) will not be discussed. Right now, highways are blocked in 12 states and the strike has generated lack of gas, food (mostly fruits), and clothes supply in several locations. Only trucks with perishable cargo are allowed to go ahead on those roads. An assembly line of carmaker Fiat in Betim, Minas Gerais, was forced to paralyze works because of lack of equipments.

[Canuck5]

Thank-you Luis.  Some reports here suggest that the Brazilian Government is imposng fines on truckers who are striking and blockiing roads, and this could break the resolve of the truckers and end the strike.  Is this a likely outcome of the situation?

[luisvieira]

That is true, but it will be a court decision about the fines...Not decided yet.

[luisvieira]

Now JBS, the top beef producer in Brazil, announced that it can't work with the strike... That means that it can affect all commodity prices.

[luisvieira]

Yesterday, there was the expected to unload 400 trucks of grain in Paranaguá, but less than forty were actually unloaded. I'm not sure how long customers will last without cancelling contracts.

[marketeye]

Luis,

Great updates. We appreciate it. With the government denying the truckers' request for a lower diesel tax, it sounds like this strike could continue for some time?

What say you?

Thanks,

Mike

[luisvieira]

I guess so. And I have heard that truckers will join an impeachment march which would take place in March 15 in several Brazilian cities. 2015 is indeed a year of social tensions down here!