Brazilian Dockworkers Suspend Strike Plans

After holding a strike last Friday, Feb. 22, dockworkers have agreed to suspend plans to hold a second strike and meet with government officials to discuss the government's new port reform plan.

The Brazilian government has proposed plans to privatize some 158 terminals to boost competitiveness and attract private investment to expand capacity. Brazil is likely to soon become the world's #1 exporter of corn and soybean crops, but is struggling to export crops at a time when global grain stores are at record lows.

Last week in response, nearly 30,000 dockworkers walked out on strike at 36 ports between 6 a.m. and 1 p.m. The strike disrupted port operation at the Port of Santos where 17 of 26 vessels had to halt the loading and unloading of cargo. The work stoppage was estimated to cost Santos Brazil, the largest terminal operator at the Port of Santos, as much as $2 million a day according to their chief commercial officer at Santos Brazil.

Brazilian government officials agreed to suspend the $100,000 daily fine for strikes and union officials pledged to suspend a second strike planned this week. Government officials have now postponed any bidding process for the terminal sales until March 15, after agreeing to negotiate with union representatives. Because of the Brazilian government's delay, the process of accepting bids for the terminals at 24 public ports, the union officials have pledged to postpone any further strikes until the same day, March 15th.

We are continuing to monitor the situation closely. Please contact your move manager if you have any questions and for the latest information.