Following the truckers’ strike, which occurred last June, the said professionals demanded a series of measures in favor of their category, among them the fixing of minimum freight rates for road cargo transportation.

Last month, that measure finally passed by Congress, and became conversion bill PLV 20/2018. The text does not specify the value of the minimum prices, and it will be incumbent on the National Overland Transportation Agency (ANTT) to calculate such values.

Rules

The freight cost will be established on a countrywide basis, and it will reflect the total transportation operating costs, with priority for Diesel oil and road toll costs.

The freight cost table should be put together taking into account the kilometers traveled per loaded axle, the distances and the specific characteristics of the loads (general cargo, bulk cargo, refrigerated cargo, hazardous cargo or neo-bulk cargo). The ANTT norm should also include the relevant calculation spreadsheet. The wording prohibits any individual or collective agreement for collection of amounts smaller than the established minimum value.

Those who do not follow the cost table will have to indemnify the carrier for an amount equivalent to double the value that would have been due, after deducting the amount already paid, and in addition will pay a fine. The indemnity will be payable for cases occurring as of July 20th, 2018. Also, any person responsible for advertising freight offers for values smaller than the established minimum value may be held accountable.

Consequences

The mentioned fixing of freight prices will generate a substantial additional cost of the order of billions of reais for several companies throughout Brazil.

According to calculations developed by Fiesp, the entity that represents industries in the State of São Paulo, the fixing of freight prices will result in an increase in costs of R$3.3 billion for the São Paulo State industry, from July to December. Per month, this amounts to more than
R$ 469.6 million. Consequently, many companies will fully or partially pass on the increase to end-consumers.

Cargo Transportation Insurance

In this context, which ultimately impacts on and increases the cost of the logistics operation as a whole, it is natural for companies to increasingly invest in own fleets. Thereby, they manage to avoid the cost increase, transferred to them by carriers, which could reach as much as 70%. Any freight cost increases will impact on the insurance value, which will become increasingly higher.