Economy

Why isn’t there more seaborne cargo transportation in Brazil?

On Thursday (July 18), the government published a new minimum freight pricing table—to the consternation of truck drivers. Since the table came out, truckers have begun rallying for a new strike—originally scheduled for today. Then Infrastructure Minister, Tarcísio de Freitas, intervened, promising to suspend the table until a consensus was reached, and agreeing to meet with union leaders on Wednesday.

This isn’t the first time the Bolsonaro administration has pandered to truckers. Back in April, the president ordered Petrobras to suspend a hike in diesel prices, out of fear of how the truckers might respond. While one may argue that the administration is at least partly motivated by Mr. Bolsonaro’s will to please his electoral base, there are other reasons to fear renewed strike action.

Last year, truckers stopped working for 11 days, creating fuel and food shortages in many parts of the country. Millions of animals died of starvation, as their rations couldn’t be transported. Billions of liters of milk were spoiled and thrown out next to roadways. At many airports, all planes were grounded due to a lack of fuel. The strike–along with uncertainties raised by the presidential election–was in part responsible for the paltry 1.1 percent GDP growth in 2018.

Experts say another strike now would be...

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