HomePublicationsInsightsGrain shipping table in MT causes apprehension

Grain shipping table in MT causes apprehension

In the midst of a wave of defaults among cargo carriers in Mato Grosso, ATC, the association that represents the segment in the state, decided to propose what it calls a “freight cost marker”. In practice, it created a table with the main road routes for transporting the crop and the minimum tariffs to be practiced in 2015. "We established a reference to cover the cost of the truck running and avoid a general crash in the sector", said Miguel Mendes, director - Executive at ATC.

According to Mendes, a set of factors explains the bad moment of the segment in Mato Grosso. Predictions of high grain yields stimulated the renewal and expansion of fleets, and this greater supply made freight rates fall.

The excessive number of holidays due to the World Cup also weighed heavily on them – B-trains and road-trains cannot travel on federal and state highways on these dates – and the approval of the law that limits truck drivers’ journeys, which reduced truck productivity by 40%, according to with Mendes. For him, more than 60% of those who contracted credit through Finame (BNDES financing) are in arrears in Mato Grosso. “We developed the marker to prevent the transporter from accepting what the market imposes and ending up paying to work”.

On one of the busiest routes, from Sorriso to the port of Santos (SP), the stipulated value is R$ 270 per ton. “We have news of some [carriers] trying to impose tariffs below the benchmark. But we are trying to make them aware of the importance of charging enough freight to keep them,” he said.

In the market, however, there are news of pressure for the adoption of the beacon, which increased the apprehension of the National Association of Cereal Exporters (Anec). For general director Sérgio Mendes, this type of table tends to harm Mato Grosso producers, who are already disadvantaged by the long distances to ports. "It may even be that they tabulate below but, in principle, it is an act that we are against, because it hurts free competition", he said.

For the Anec representative, it is very difficult for two large carriers to work at the same cost. "Many of them have more guaranteed return shipping than others, and therefore would be able to offer lower shipping".

The ATC says that it has already been accused of forming a cartel, but argues that the table alone does not characterize the practice. “How do you make a cartel charging cost value?”, asked Miguel Mendes.

Source: Valor Econômico

By Mariana Caetano

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