Freight costs slashed 6.5% in Brazil as new pricing table gets underway

Prices fall as government-controlled pricing system mandates cuts

Image by RENE RAUSCHENBERGER from Pixabay

Brazil’s logistics operators now have a new minimum freight pricing table, cutting transport rates by 6.5% across the board.

The new prices, which have been approved by the national land transport agency ANTT, reflect a heavy fall in the price of diesel so far this year, says a report in O Estado de Sao Paulo.

The pricing table was created in 2018 by the Government of ex-President Michel Temer in response to a nationwide truck drivers’ strike that blocked roads and compromised the supply of fuel, medication and food right across Brazil. There was a huge public outcry at the time.

Brazil's national association of transport users, ANUT, says that it had expected an average reduction of 10% compared with the cost tables agreed in January 2020.

The association has requested clarification from ANTT, with ANUT claiming that the agency used a trucking model to formulate the table, one that is not used by most drivers.

ANUT has also request clarification regarding the drop in diesel prices.

The last price adjustment took place in January 2020, when the minimum prices suffered a re-adjustment of between +11% and +15%, according to the type of cargo and operation.

The architect of this national pricing scheme was Michel Miguel Elias Temer Lulia, who served as the 37th president of Brazil from 31 August 2016 to 31 December 2018. He took office after the impeachment and removal from office of his predecessor Dilma Rousseff, who was accused of corruption.


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