HomePublicationsInsightsRoad modal: dissatisfaction and criticism from all sides

Road modal: dissatisfaction and criticism from all sides

Responsible for moving more than 60% of cargo in Brazil, road transport remains in the spotlight after the May 2018 strike. recently published research by CNT, more than half of truck drivers admitted to being dissatisfied with the achievements obtained with the stoppage.

This result comes after another survey, this time conducted by ILOS, in which 77% of industries installed in Brazil complained about the existence of a minimum freight table, anticipating an increase in product prices. That is, nobody is satisfied and the new government needs to get around this crisis.

Much of the criticism from truck drivers is mainly focused on the price of diesel, which ended 2018 at R$3,604 per liter, on average, up 4% compared to December of the previous year. Averse to subsidies, the new government has already declared that there is no interest in interfering in the fuel price policy and that this should be left to the market itself.

The point that is not raised is that the impact of the price of diesel on the carrier's costs is more significant the greater the distance traveled by the carrier. On short routes, with up to 100 km, fuel represents, on average, 15% of the transport cost, while on routes with 3.000 km, it represents almost 40% of this cost.

That is, once again, we go back to the fact that Brazil's problem lies mainly in the lack of adequate transport infrastructure and the misuse of modes. It cannot happen as we see from time to time trucks leaving Mato Grosso carrying soybeans to the port of Santos. Everyone loses, the exporter loses, who spends more on transport, the transporter loses, with high transport costs and the buyer loses, who spends more to acquire the product.

The construction of Ferrogrão could be a light at the end of this seemingly endless tunnel. But Brazil needs more. It needs to encourage cabotage and take advantage of the nearly 8 km of navigable coastline and the fact that a large part of the population is concentrated up to 200 km from the shore. It needs navigable waterways and needs to improve road and rail access to ports. And, finally, it needs to integrate all modes and explore the best of each one. Only then will we have a balanced matrix capable of sustaining the expected economic growth. Without everyone being dissatisfied.

Reference:

CNT Survey Truckers Profile 2019

https://ilos.com.br

Graduated in Civil Engineering from the Federal University of Rio de Janeiro (UFRJ) and in Social Communication from Faculdades Integradas Hélio Alonso (FACHA). Expertise in several projects with emphasis on market analysis for companies such as Unilever, Intertank, Invepar, Aqces, Inter-American Development Bank and World Bank.

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