Home Transportation Senate approves Provisional Measure fixing freight and giving amnesty to truckers

Senate approves Provisional Measure fixing freight and giving amnesty to truckers

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The Senate approved, on Wednesday evening,July 11st, after an agreement among the legislators, Provisional Measure (MP) 832/18, which allows the National Land Transport Agency (ANTT) to define a freight table for cargo transportation . The matter now follows for presidential sanction. The text was also approved this Wednesday July 11st by theHouse of Representatives.

To speed up the vote, the senators did not discuss the matter in plenary. The measure was one of the truckers’ claims that paralyzed roads across the country in May, but faces strong resistance from agribusiness.

The text establishes the National Policy of Minimum Floors of Road Transport of Loads and established the prohibition to close any freight agreement in values ​​below minimum floors. The freight rate will be valid in the national territory and should reflect the total operational costs of transportation, with priority for diesel oil and toll costs.

The freight table should take into account the kilometer driven by the loaded axle, the distances and specificities of the loads according to the definition given by the MP itself (general, bulk, refrigerator, dangerous or neogranel). To give visibility to the calculation, the ANTT standard should also include the spreadsheet used to reach the minimum freight.

The text foresees that the table be published twice in the year – until January 20 and July 20 – with validity for the semester. If the new table is not published in these terms, the previous one will continue in force and its values ​​will be updated by the National Extended Consumer Price Index (IPCA) in the accumulated period.

The measure also establishes that whenever there is a fluctuation in the price of diesel in the domestic market of more than 10% in relation to the minimum price, more or less, ANTT will publish a new standard with floors considering the variation in the price of the fuel. Through the text, it will be for ANTT to take measures to ensure that the measure is in fact implemented, as well as punishments, when applicable.

Impact on the São Paulo industry
The impact of the freight rate on the Sao Paulo industry between June and December 2018 is estimated at R $ 3.3 billion in additional freight costs (19.8%). This increase is equivalent to an additional monthly expense of R $ 469.6 million, according to research by Rumos da Indústria Paulista. Held by the Federation of Industries of the State of São Paulo (Fiesp), the survey consulted 400 companies.

According to the survey, if the minimum freight price table is maintained, 55.3% of the companies intend to remit, in whole or in part, the increase in freight to the price of the product. However, this transfer is already perceived by the companies surveyed.

Half of them (50.1%) felt an increase in the price of inputs when the value of the freight is paid by the supplier. The impact was 2.0% on the cost of input from companies.

“After three years under pressure from the poor performance of the economy, the industries of Sao Paulo have little room to absorb this increase in the price of freight without passing on to the prices of their products. However, this transfer will occur at a time of weak recovery of the economy, which should lead to a drop in sales, as projected by the companies that participated in the survey, “says Jose Ricardo Roriz Coelho, acting CEO of Fiesp.