Friday , March 5 2021

Diesel fuel and freight prices are watch bombs that are disarmed by the government – the economy

The drivers strike in May stopped by
A driver strike in May halted the country and the government was forced to discuss the subsidy for diesel by the end of this year. (photo: ALEXANDRE GUSANSHE / EM / D.A. PRESS 25/5/16)

So Paulo – since last Friday, the National Land Agency (ANTT) has been able to find out who hires road haulage services or driver service providers for non-compliance with the table of values ​​with a minimum floor, effective from May 30th. Resolution no. 5.833, published in the Official Journal of the Union, fixes fines.

The logistics industry has tried to ensure that the agency penalizes fines that will not be charged until new minimum floor loads are released, but the plan has not been refunded. In turn, the ANTT had already monitored compliance with the minimum loading level. However, in the case of an infringement, it could not exceed the number of permits, since the values ​​were not yet regulated.

From now on, the fine will range from $ 550 to $ 550. If an undertaking requests freight road transport services below the minimum floor set for ANTT, it has a special penalty of twice the difference between the amount paid and the floor, taking into account the driver, in the range of minimum and maximum values. A carrier who provides a service below the table in the table may also be required to pay a fine of $ 550.

However, according to the resolution, those who declare road contracts worth less than floor coverings can be fined R $ 4.975. A fine of $ 5,000 may be imposed on contractors, carriers, market agents, or employers to prevent or hinder access to information and documents required by ANTT for inspection.

"(tabulation) creates additional costs to a system that increases inefficiencies across the chain" – Thiago Cardoso, Infrastructure Specialist (photo: Divulgao)

So far, the Supreme Court of Justice (STF) has not decided on the compliance of congestion charges with freight charges, which was questioned by at least three direct complaints of non-compliance with the Constitution (ADI). The trial is under way at the plenary sitting of the Court and is not yet scheduled.

In the business sector, ANTT's progress, now with fines, was another blow, and it should create new STF requirements. This is an assessment, for example, Technical Advisor to the National Logistics and Infrastructure Commission of the National Agricultural Confederation (CNA) of Elisangela Pereira Lopes. With every new fact that is related to the changes in the rules for the carriage of goods, the company has sought to sensitize the agency, the Ministry of Transport, the Civil Division and the Supreme Court in an attempt to abolish the minimum transport table. Now that the fines come into force, they do not need to be different.

"Over the last few months, the agriculture and livestock sector has adapted to this new situation, and so far we have seen a rise in costs. For example, 40% of the transport of maize is affecting the value of the product shipped before boarding. Currently, transport from Sorriso (MT ) to Santos (SP) or Paranag (PR) transport, this figure already reaches 70%, "he explains.

According to the researcher, products such as milk, coffee, beef and juice have the most impact on the table with a minimum freight value, as they have rules that do not apply to these activities, such as returning cargo, and traveling on shorter routes. For example, in the case of a dairy he can not re-import another product.

Furthermore, as with the linear ANTT table, it does not take into account the differences between motorways which, according to the National Transport Confederation (CNT), if they are in poor maintenance, can increase costs by up to 28.5%.

TRANSPORTATION According to the CNA representative, these disruptions mean that many drivers and contractors do not meet the minimum freight rates table. "These requirements create an economic ineffectiveness for those who produce and reflect on price increases. The effect is higher because many do not stand the table. Now with a resolution that imposes a fine, we recommend to our partners that, while ANTT employees have few employees who do it will monitor there is a risk, "said CNA, Technical Advisor to the National Commission for Logistics and Infrastructure.

The CNA Executive Body stated that The manufacturer had informed the provider that the service provider had proposed to issue a note in the amount indicated in the table, but the payment was lower. Such a situation, in addition to being unlawful, gives rise to untrustworthy legality for contractors who may be liable in the future because of the existence of agreements between parties which do not respect the provisions of the ANTT.

The group "Freight Without Tables", which accounts for 21% of gross domestic product (GDP), is made up of the Brazilian Association of Soybean and Maize Manufacturers (Aprosoja Brasil), the Brazilian Vegetable Oil Companies Association (Abiove), the Brazilian Association (ABPA), the National Citrus Citrus BR), the Sugar Industry (Unica), the Brazilian Association of Exporters of Meat (ABIEC), the Brazilian Food Industry Association (ABPA) Abia) and the National Confederation of Industrialists (CNI) issued a warning warning about the risk of fines being presented.

The group, which is responsible for about 40% of state exports and attempts to suspend cargo tariffs at the Supreme Court, said it was "concerned and surprised" to publish Resolution 5.833 / 18. "We believe that the publication of Resolution 5.833 / 18 does not comply with the legal process: a fine is defined without a clear methodology and a fine set at an inappropriate amount.

Moreover, that resolution does not respect the proportionality of the application of fines and could reach 200% of the value of the product transported, "he informed.

CNI published a statement stating that the value of fines could be exacerbated by the "still unacceptable legal security system imposed on the Brazilian industry" and accused of this measure as "manifestly inappropriate to the constitution".

STUDIO According to a recent survey conducted by the Boston Consulting Group (BCG), the government's decision to tabulate freight transport by road is not a good measure to restore balance of performance, as it does not solve the problem of overproduction problems, nor does it touch upon the informal problem. "In addition, it creates additional costs to a system that increases inefficiencies across the entire chain," says Thiago Cardoso, one of those responsible for the analysis and infrastructure specialist.

With regard to the Cardoso tabletop, you can increase the driver's revenue in the first month, but this is the biggest benefit to the minimum guaranteed guaranteed by the ANTT, ensuring that the workload is the same as before or that all the new rules apply. The BCG Executive Director also points out that in discussions that set minimum freight and other guarantees, only independent drivers and not carriers were taken into account, so "it is still a market with distortions," he warns. ANTT was searched for, but contacts did not return.

NEW GOVERNMENT In addition to the freight transport tariff in road transport, the car driver's strike in May allowed the government to pay subsidies to avoid an automatic increase in oil prices for diesel. The measure is valid until 31 December. Then there are some scenarios. The new government transition team, which often criticizes the subsidy, can decide to continue supporting, sitting in a negotiation on another type of agreement, or simply restoring support and waiting to see if there is a reaction on the roads as in May.

Elisangela, CNA, believes that, despite the new government's profiles, there is a tendency to renew the contract for diesel fuel subsidies. "This decision was taken because of the government's inefficiency in the economy, increasing daily diesel fuel," he says.

Data from the Brazilian Institute of Economics (IBE), based on Fundao Getulio Vargas (FGV), shows that the total cost of government measures for controlling strikes in 2018 amounted to $ 13.5 billion. The calculated account takes into account changes in the petroleum refineries' diesel period (starting from daily prices they became monthly), temporary subsidies for oil refineries and distributors, PIS / Cofins and Cide reductions for fuel other than cargo tables.

With a subsidy of R $ 0.30 per liter of fuel, the impact on the Treasury, according to Ibra, was $ 9.5 billion this year. Researchers from the study believe that 2019 is the right year to put an end to this subsidy policy. They take into account the stabilization of oil prices in the international market at US $ 75 and US $ 3.80, which would help ensure a high acceleration in the first half of 2018.

On the way

What BCG study indicates in the wrong ANTT table

"This does not apply to one of the main reasons for the current low rates of freight transport: the surplus of vehicle supply
"The crisis is not a decisive factor: the informal nature of the industry, leading to inadequate practices, such as overtime or over-regulated load direction approaches, and distance to service prices;
"It was an artificial absorption of costs

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