A trucker strike in Brazil is causing a delay in shipments of Golden papayas, ginger and other produce items into the US. The drivers are protesting current Diesel prices, which have been continuously rising since June 2017. Influenced by a rising dollar, international oil prices, and instability in oil producing countries, Brazil’s government made several adjustments last week that have angered drivers, who took to the streets on Monday and have been protesting since.
According to international press reports police forces conducted operations to clear blocked roads and military vehicles provided escorts for trucks transporting emergency fuel to police stations and army facilities in Rio de Janeiro and Sao Paulo.
Photo: HLB Specialties
Air shipments impacted
Trucks are lining many major highways throughout the country, with 200 blockades being reported so far in 24 of the country’s 27 states. Drivers block the roads with burning tires and tree limbs, restricting passage to many airports. “Brazilian papayas imported into the US are all flown by air from airports in São Paulo and Rio de Janeiro, where the bulk of the blocked roads is,” says Melissa Hartmann de Barros with HLB Specialties. “Our last shipment of Brazilian papayas came in on Monday, May 21st and the situation is getting worse,” she added. Normally, HLB receives shipment from Brazil on a daily basis into Florida and California. In addition to the US, HLB’s facilities in Germany are impacted as well as the strike applies to all produce that leaves the country by air.
Right now, produce transported by air is impacted. However, if this situation continues Hartmann de Barros expects vessel shipments soon to be impacted as well. It is uncertain when the strikes will be lifted. Now gas stations are running out of fuel and soon transportation might get paralyzed. "We are hoping to resume departures by Tuesday but all is uncertain as of right now," shared Hartmann de Barros.
“We did put our ginger shipments on hold,” says Apanatche Bark with Pommer Fresh Foods. “In addition, we are keeping product in the house that was supposed to fly out this past weekend. I am glad we still have some inventory in our US cold-storage facility,” he added. In addition to air freight, Pommer Fresh Foods is getting ready to start shipping by vessel as the peak season for ginger is around the corner.
Photo: Pommer Fresh Foods
Brent barrel from $30 to $80
According to local reports, last week the Brent barrel traded on the London Stock Exchange at US$80, compared to US$30 in the beginning of 2016. The prices are being pushed by uncertainties in two major producing countries -Iran, which was again targeted by US sanctions, and Venezuela, plunged into a political and economic crisis.
The Brazilian Association of Truckers, one of the largest transportation unions, called on its members Friday to remove their trucks from roadways but "continue to protest peacefully." Perishable fruits and vegetables all but disappeared from local supermarket shelves.
Bus and metro services in several Brazilian cities were reduced and several flights, mostly domestic, were cancelled for a third straight day on Saturday. Cities in the interior, further away from refineries along the Brazilian coast, have been particularly hard hit.
President Temer yields ground
Only yesterday, President Michel Temer stated he has lowered the price of diesel in a bid to end the strike. Temer said the price would be cut by 46 Brazilian cents ($0.13) per litre. The new price would be maintained for 60 days and adjusted monthly thereafter. It is not clear if striking drivers will accept his offer.Both Hartmann de Barros and Bark hope the situation will improve soon and an agreement will be reached between truckers and government.
For more information:
Melissa Hartmann de Barros
HLB Specialties
Tel: (+1) 954-475-8808
Apanatche Bark
Pommer Fresh Foods, Inc.
Tel: (754) 701 5767