Brazilian Military Deployed To Break Up Trucking Strike As State Of Emergency Worsens

  • Written by Zero Hedge
  • Published in Economics

A nationwide trucking strike in Brazil entered day six on Saturday, as blocked roads have prevented critical food and supplies from reaching their destinations.

The protests, triggered by a 50% spike in fuel prices over the last year, have resulted in the declaration of a state of emergency across most major cities as shelves run bare and fuel supplies dwindle. Airports have reported running out of fuel, hospitals are running out of supplies, and public transport and trash collection have been reduced or halted across the country. Some food prices have also spiked as supplies dwindle. As we noted on Friday, a lack of livestock feed threatens a billion chickens and 20 million pigs who may starve to death.

There's a trucker strike in Brazil, and it's impacting everything from air travel to chicken feed. @ShastaReports on Sao Paulo's State of Emergency https://t.co/X0e8Fcb4bH pic.twitter.com/ZvvdjXahCl

— CNN International (@cnni)
May 25, 2018

Brazilian export group ABPA said that over 150 poultry and pork processing plants had indefinitely suspended production, while Brazil's sugar industry - the world's largest - is slowly halting cane harvest operations as their machines run out of fuel.

How is our state? No gas, no food, welcome to the truckers strike in Brazil! Zero gasoline pic.twitter.com/9fIFBiVq6X

— ScheilaSpaderGibson (=^e^=)♠ (@spaderGibson)
May 23, 2018

Despite a Thursday agreement with the truckers and the Friday deployment of the military to physically unblock roads, the government has only reported a few blockades being lifted on major highways. 

Truckers Strike in Sapezal on BR-364, Mato Grosso State. High price of diesel and expensive taxes. The trucker can’t work with this current situation. #agro#brazilç÷ pic.twitter.com/wtTXBgsJTA

— Douglas Marangon (@DouglasMarangon)
May 21, 2018

In an attempt to end the dispute, oil company Petrobas cut the price of diesel by 10% for two weeks - however all that did was scare investors. The truckers were not impressed, considering that they've been subject to fuel price increases of around 50% over the last year.

Petrobras shares plunged after the announcement and are down at least 20 percent this week, leading losses in the Ibovespa index, which has lost 4.3 percent in the period. That pushed the stock market’s monthly drop to 7.7 percent, one of the worst performers among major global benchmarks. -Bloomberg

The main entity representing truckers, ABCAM, said they haven't changed their stance - and that they will call off protests only after federal diesel taxes are scrapped

truckers say they want a definitive solution, saying they will end the protest only when a decision to eliminate federal diesel taxes is...

Read more from our friends at Zero Hedge

60°F

Philadelphia

Clear

Humidity: 76%

Wind: 8.70 m/h

  • 01 Oct 2020 72°F 56°F
  • 02 Oct 2020 65°F 53°F