South America Calling

Truckers Block Mato Grosso Soy Routes

Truckers have been blocking the principal highway in Mato Grosso, Brazil's main soybean state, for the last five days right in the middle of harvesting season.

The delays caused by the protest against declining freight rates and rising costs have left exporters worried they will leave ships waiting at port and farmers concerned they may run out of diesel for harvest machinery.

Drivers are impeding trucks from traveling along the BR-163 highway, which carries 70% of Mato Grosso's grains.

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According to highway police, there are four blockades on the road Monday. There are other blockades in Mato Grosso, Mato Grosso do Sul and in the south, although their impact is not as great.

The soybean harvest in Mato Grosso is already behind schedule, at 34% complete compared with 48% last year, says AgRural, a local consultant, and the slow arrival of diesel could delay fieldwork further, if the blockage persists.

Soybean crushers and exporters will be getting concerned about fines for late delivery and demurrage at port.

On Monday, Abiove, Brazil's soybean industry association, issued a statement, condemning the blockades as an illegal attempt to push up freight rates.

The blockade, organized by the truckers union and local haulage companies, probably won't drag on much longer. However, it may be a prelude to an upswing in strike action in 2015.

Brazil's economy may be slipping into recession, while inflation is expected to top 7% in 2015. The situation has already spawned strikes in key industries, notably car making, and could lead to problems at port, for example, later in the year.

(CZ)

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