SAO PAULO—Truckers across Brazil started an open-ended strike on Wednesday, protesting high fuel prices and a proposed ban on trucks in Sao Paulo during peak hours to ease the business capital's grinding traffic jams.
Only independent truckers—about half of the country's truck fleet—stopped work, and commodities and shipping officials said there was little immediate impact.
But commodity traders are concerned about the movement spreading, as it did in a four-day strike nearly a decade ago, that brought most of the economy to its knees. Any disruption in the flow of goods from Brazil can affect prices on world commodities markets.
The president of the Brazilian Truckers Association, Jose da Fonseca Lopes, said that most truckers would either stay at home or park at gas stations without disrupting traffic.
The transport ministry has not opened talks with the truckers yet, Lopes said, adding that independent truckers number about 1 million. The strike would continue until the government agreed to talks, he said.
"The one sin we will commit will be in Sao Paulo with a large show of trucks in two lanes of the main Tiete ring road in protest," he said, referring to the city's plan to ban trucks during peak hours.
A large portion of commercial goods moving between Brazil's south and north and the main port of Santos pass through the main arteries of Sao Paulo, jamming city streets and highways already at capacity with local motorists.
Dependent on Trucks
Latin America's largest economy, Brazil is still heavily dependent on trucking to move goods. It has only recently begun to invest in infrastructure such as railways, airports, barge systems and ports that have been neglected for decades.
Brazil is the world's largest exporter of coffee, sugar, orange juice, beef and poultry. It is a major grains and iron ore exporter as well.
The main ports of Paranagua in Parana state and Santos in Sao Paulo said there was no disruption in the flow of goods.
"We haven't noticed any impact yet but if this drags on we will. And the agricultural sector really doesn't have any alternative," said Leon D'Avalo, a grains trader at Granos Corretora in the center-west state of Mato Grosso do Sul.
Protests have broken in several countries in recent weeks over rising fuel prices. Brazil's state oil company Petrobras raised diesel prices by 15 percent in May, although fuel prices are still low by international standards.
Lopes said independent truckers were not only protesting the rise in diesel prices, but added there had been an insufficient adjustment to freight rates to reflect higher fuel prices.
"A truckers strike is serious, potentially explosive but it's still early to say anything definitive. For now, we're focusing on trading," said Sandro Pereira, a grains trader at Dinamica Corretora de Cereais in Rondonopolis, Mato Grosso.
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