The strike is increasing shipper costs, especially importer costs and those who use the Port of Santos, Brazil’s largest container port. (Above: The Port of Santos.) Photo credit: Tecon Santos.
The strike by auditors with Brazil’s Receita Federal (customs office) has intensified in the past two weeks, as Sindifisco, the customs officers’ union, dialed up pressure on the Temer administration to increase pay, offer a bonus plan, and improve their pension.
The union has increased its “all-day strikes” from one day to three days per week, and as a result, up to 4,000 containers are delayed daily. Some imports are delayed for up to 21 days. Export delays extend up to three days; under normal conditions, exports would be cleared in a few hours.
Furthermore, these actions, in turn, are driving up shipper costs, especially importer costs and those who use the Port of Santos, Brazil’s largest container port. Importers of automobile parts are finding it especially hard now that their stocks have been reduced over the four-month strike, with their supply chains seriously affected, due to the long delays in customs clearance. These delays now average 15 days, according to Sindamar, the ship agents association for Santos and the state of São Paulo.
Read more here.