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Brazil adjusts controversial freight rates

  • : Fertilizers, Oil products
  • 19/07/19

Brazil's national land transport agency (ANTT) published new guidelines regulating minimum truck freight rates.

The new resolution will substitute the previous methodology for determining minimum freight rates, which was issued in May 2018 following a national truckers' strike.

The ANTT held five public hearings across Brazil and received more than 500 contributions as part of the process of rewriting the way the rates are calculated.

The new methodology creates 11 categories of cargo, with more precise minimum fees per kilometer transported.

The minimum freight rates will be adjusted twice a year, in January and July. The rates can also be increased when diesel prices rise by 10pc during the six-month period between adjustments, as was previously the case.

The agency plans to continue to work on the methodology over the next six months, and will take additional factors into consideration, including the transport of special cargo, partial loads, backhaul rates and diesel prices.

The agency maintained fines for failure to comply with the freight rates, with a minimum fine of R550 ($134) and a maximum of R10,500.

At least 60 agricultural and industry groups filed legal appeals challenging the new minimum freight rates law. The appeals are on hold though, and the minimum rates will remain in place as the Supreme Court considers a handful of the cases.

While the agency continues to work on methodological improvements, the court has scheduled a hearing for 4 September to rule on whether the minimum rates violate the constitution.

In a related development, truck sales in Brazil climbed by 45pc in January-June 2019 to 46,867 units from 32,337 in the same period of 2018, the national federation of vehicle distributors (Fenabrave) said.

Medium to large-sized companies, especially in agroindustry, have been expanding their own truck fleets as a hedge against a share increase in their freight costs.

June truck sales rose by 36pc to 7,804 units.


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24/09/26

Brazil's drought: Northern rivers still dropping

Brazil's drought: Northern rivers still dropping

Sao Paulo, 26 September (Argus) — The worst drought in Brazil's history continues to reduce river levels in the Northern Arc region, hampering navigation on rivers that are used as waterways and are important routes to transport grains and fertilizers. Madeira waterway The waterway links Rondonia state's capital Porto Velho to the Itacoatiara port, in Amazonas state. Itacoatiara port is expected to receive around 371,435 metric tonnes (t) of fertilizers in September, according to line up data from shipping agency Unimar. Status: The situation is most critical in the Madeira waterway, the second largest in the northern region, in Porto Velho. The state's ports and waterways authority (Soph) halted operations there on 23 September because the Madeira River's depth at the port reached 25cm (9.8in), the lowest since monitoring began in 1967. The Madeira River depth in Porto Velho increased to 34cm on 26 September, according to monitoring data from the Brazilian Geological Survey (SGB). Amazonas waterway It is the main waterway in Brazil's north, handling around 65pc of the region's cargo, according to the national transportation and infrastructure department (Dnit). It links Amazonas' capital Manaus to Para's capital Belem. Status: The Negro River has also been falling. The depth was at almost 13.88m at the SGB monitoring point in Manaus on 26 September — an extreme drought level and very close to the historic low of 13.64m recorded in 2023. Tapajos waterway It is an important waterway to move production from Mato Grosso state's northern area, with the Santarem port, in Para state, as a destination. The Santarem port handled nearly 4mn t of cargo in 2023, with fertilizers accounting for 578,630t, according to the Para port authority. Status: The Tapajos-Teles Pires waterway is also facing a dire situation. The national water and sanitation agency ANA declared a water shortage on the Tapajos River on 23 September. Drier weather than usual has dropped the levels of Tapajos, especially in the stretch between Itaituba and Santarem cities, in Para state, where flows are below the minimum levels observed in history. The depth of the Tapajos River at the Itaituba monitoring point, where the transfer point for the Miritituba waterway is located, was at 92cm on 26 September, below the record low of 132cm, according to SBG data. At the Santarem monitoring point, where the port of Santarem is located, the Tapajos River was at 74cm, a level considered dry. The historical minimum at the location is -55cm below the port's reference point. A level below zero does not mean the river is dry, but a negative reading indicates very low conditions. Tocantins-Araguaia waterway The Tocantins-Araguaia waterway encompasses the Araguaia and Tocantins rivers. It runs from the Barra do Garcas city, in Mato Grosso, onto the Araguaia River, or from Peixes city, in Tocantins state, onto the Tocantins River, to the port of Vila do Conde, in Para. Soybeans, corn, fertilizers, fuels, mineral oils and derivative products are transported via the northern waterways. Vila do Conde port handled 19.3mn t of cargo in 2023, according to Para port authority. Status: The SGB has two monitoring points on the Araguaia River. In the Nova Crixas city, in Goias state, the river was at 299cm, below the historical level of 310cm. In Sao Felix do Araguaia city, in Mato Grosso state, the river was at 257cm, a situation of extreme drought and close to the historical minimum level of 251cm. In September, the federal government announced investments of R500mn ($91.4mn) to carry out dredging work on stretches of rivers in Amazonas. Para's state government requested another R146mn to address problems caused by the drought. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US trucking index at 18-month high in August: ATA


24/09/25
24/09/25

US trucking index at 18-month high in August: ATA

Houston, 25 September (Argus) — US trucking freight volumes rose in August to the highest level since February 2023, the American Trucking Association (ATA) said. The ATA's seasonally adjusted Truck Tonnage Index (TTI) rose in August by 1.8pc from a month earlier and by 0.7pc from a year earlier. The index has increased on a monthly and yearly basis only twice in the past 18 months, last doing so in May 2024 . August's "robust gain" indicates freight levels are rebounding from a bottom, according to ATA economist Bob Costello. The TTI's month-to-month movement so far this year also shows the freight market is "at an inflection point," Costello said. The US trucking industry contracted in 2023 and initially got off to a slow start this year. Last week, the Federal Reserve cut its target lending rates for the first time in four years , suggesting the worst inflationary pressures may be over. The TTI is calculated monthly using a survey of ATA membership to estimate seasonally-adjusted trends in the value of US truck freight. Trucking comprises roughly three-quarters of tonnage carried by all modes of transportation in the US, and so can serve as an indicator of the health of the transportation sector and the economy at large. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Vertex Energy files for bankruptcy, seeks sale


24/09/25
24/09/25

Vertex Energy files for bankruptcy, seeks sale

Houston, 25 September (Argus) — Specialty refiner Vertex Energy has filed for chapter 11 bankruptcy in a US court following a failed foray into renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery. Vertex has entered into a restructuring support agreement with its lenders and secured $80mn of new funding to finance its day-to-day business operations, the company said late Tuesday. The refiner is also considering a "more value-maximizing sale transaction" and expects to confirm its chapter 11 bankruptcy plan by the end of the year, according to the 24 September press release. Vertex announced in May this year that it would "pause" renewable diesel production at its Alabama refinery and return the unit to producing fossil fuel products. The company later said it would use a third quarter turnaround to return the Alabama plant's converted hydrocracking unit to processing fossil fuel feedstocks and be back online in the fourth quarter. Vertex also operates a re-refinery near New Orleans, Louisiana, that produces low-sulfur vacuum gas oil (VGO) and multiple used motor oil (UMO) processing plants and collection facilities along the Gulf coast. Refiners have faced mixed fortunes in recent years with their investments in renewable fuels after a glut of new supply flooded markets and depressed renewable credit prices. US independent refiner Delek announced in August that it is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. Chevron said earlier this year it was indefinitely closing two biodiesel plants in Wisconsin and Iowa due to market conditions. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Container lines to impose US strike surcharges


24/09/24
24/09/24

Container lines to impose US strike surcharges

New York, 24 September (Argus) — Container ship owners Maersk, CMA CGM and Hapag-Lloyd warned their clients that if a looming port strike takes place, they would implement port disruption surcharges for container cargo moving to and from the US east and Gulf coast terminals. If a International Longshoremen's Association (ILA) strike takes place, CMA CGM's surcharge will go into effect on 11 October. The company will charge $1,500 per twenty-foot container unit (TEU) and $3,000 per forty-foot container unit for cargo moving from Latin America and the Caribbean to the US east and Gulf coasts. CMA CGM's surcharge for exports from the US east and Gulf coasts to Latin America and the Caribbean will be $800 per TEU and $1,000 per forty-foot container unit. Hapag-Lloyd's surcharge of $1,000 per TEU will apply from 18 October to all imports to the US east and Gulf coast. Maersk will implement its surcharge on 21 October. It will include $1,500 per TEU, $3,000 per forty-foot container unit and $3,780 per forty-five-foot container unit for cargo moving in and out of US east and Gulf coasts. Its surcharges are subject to regulatory approval for containers departing from China. The company is prioritizing import container movements before disruptions take place and asking its customers to expedite documentation and customs clearance to retrieve cargo promptly. It warns that strike disruptions will affect terminal operators' ability to monitor refrigerated containers and encourages its customers to plan accordingly to avoid the risk of loss to temperature-controlled cargo. The surcharges would cover higher operational costs that will be incurred due to service disruptions, the companies say. They are exploring alternative routing options. A possible strike could cause some of the container ship cargo to be re-routed to US west coast ports, Canada and Mexico, and then transported on rail or truck to the US Gulf and east coasts. The contract between the ILA and the United States Maritime Alliance (USMX) is set to expire on 30 September. The current six-year agreement covers approximately 25,000 port workers employed in container and roll-on/roll-off operations at ports from Maine to Texas. The USMX reiterated its willingness to reenter discussions with the ILA on a new master contract. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Draught limits tighten on lower Mississippi River


24/09/23
24/09/23

Draught limits tighten on lower Mississippi River

Houston, 23 September (Argus) — The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate. The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers. All northbound transit also cannot load more than four barges wide or configure more than five barges wide. Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide. All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river. More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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