Minimum freight table on the path of the new government

Beyond the need for investment in transport infrastructure discussed in the previous post, the new government also inherited a very thorny and controversial problem: the minimum freight table, implemented together with the National Policy on Minimum Floors for Cargo Road Transport to end the 2018 truck drivers' strike. On the one hand, the government has road transport users who criticize freight tariffs and, on the other, transporters, who threaten a new strike if there is discontent.

The liberal bias of the new economic team is not usually adept at strong market regulations, tending to let prices adjust due to competition between companies. However, the topic deserves caution on the part of the government, which is already aware of the consequences of a stoppage like the one in May 2018, which brought billionaire losses to Brazil. The government has been sparingly dealing with the issue, it admits that it will attack it, but, at first, it calms truck drivers with the promise of “affection with the table” and encouragement for the market to practice it.

But it is known that the table, especially the way it is formatted, has serious problems. At the very least, if it maintains the table, the government needs to review its methodology, as it is currently full of distortions. Among them, I mention two: due to the tracks created, the freight to run 100 km is more expensive than to run 101 km (R$1.080 against R$672). Another unusual situation: for the same distance of 100 km, it is cheaper to move a load in refrigerated trucks or for dangerous goods (R$735 and R$820, respectively) than in general cargo trucks (R$1.080), which are usually cheaper.

Figure - Analysis of the freight table by mileage and by type of vehicle

Source - ILOS

That is, to encourage the market to practice the table, the new government will need to remodel it. However, the best scenario would be for the economy to warm up as soon as possible, which would naturally increase the demand for transport and cause an increase in freight prices, leaving the table in the background. While the long-awaited economic growth does not come, it is up to everyone to wait until the next January 20th, the deadline for ANTT to publish the new table for the first half of 2019, in accordance with Law 13.703/2018.