Protest by truck drivers and impacts on road logistics

Throughout the crisis generated by the Covid-19 pandemic, we have seen numerous reports of impacts related to logistics and the consequences on the supply of inputs and products along supply chains. Once again, the theme of supply disruptions made headlines, but not related to the health crisis, but to the various roadblocks that pro-Bolsonaro government truck drivers have caused on the country’s roads. At 8 am on September 9, blockades were confirmed in at least 15 states of the federation: SC, RS, PR, ES, MT, GO, BA, MG, TO, RJ, RO, MA, RR, PE and PA .

Figure 1 – 15 states that registered lockdowns two days after the 7/1 demonstrations. Source: GXNUMX; ILOS.

Such manifestations have a political character, since there is no coordination of any sectoral entity of road freight transport on the protests, which are not limited to the main claims of the category currently, related to the price of fuels and minimum freight floor. The paralysis of truck drivers can have consequences such as shortages and the worsening of the economic crisis and inflation, which has stifled the purchasing power of Brazilians, especially the poorest. It is worth remembering that in 2018, as the managing partner of ILOS Maurício Lima describes in his post at the time, the truck drivers' strike brought severe impacts to different industries and business sectors, and this “ghost” of a new strike has haunted the economy ever since.

These manifestations shed light on the weaknesses that many sectors have in their supply chains and constant risk that dependence on road transport generates for companies operating in Brazil. Several sectors report the impacts that the stoppages caused in cargo transport. Eletros (an association of electronics and household appliances manufacturers) stated that there are already industries at risk of paralyzing production lines due to lack of inputs that would be delivered by trucks stopped at roadblocks. Abit (textile industry) stated that carriers refused to collect cargo from SP for transport to SC. Same case for Abiplast (plastic industry), which faced difficulties in hiring carriers and with loads blocked on the roads. ABPA, an entity in the poultry and pork sector, one of the most impacted by the Covid-19 crisis, said that although there are no blocks on the descent towards the ports, there are difficulties in the empty return, which can compromise the chain as a whole. all.

The pandemic crisis has generated huge logistical problems, such as a lack of inputs due to plant shutdowns, and the crisis of a lack of containers, which has been making international maritime freight more expensive. For the economy to resume, it is essential that there are no additional political factors that aggravate the problems already faced by the sector. The government has been working on the agenda that intends to unlock investments in highways, railways, ports and airports, but it is important that ideological issues do not hinder the development of this important objective, especially in the challenging context that presents itself.

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References:

– Folha de S. Paulo – Electronics industry reports risk of stopping production due to truck drivers blocking
– G1 – For the second consecutive day, Bolsonarist truck drivers block roads in states
– Folha de S. Paulo – Truck drivers protest on highways in three states
- The globe - Bolsonaro and Tarcísio record messages for truck drivers and appeal for unblocking roads