BUENOS AIRES, ARGENTINA — Argentina’s Federation of Argentine Transporters (FETRA) on Oct. 17 expressed its intent to go on strike next week, a move that could have a wide-ranging impact on the country’s grain shipments, according to Reuters.
FETRA did not indicate how long a potential strike may last, noting only that it wants to see an increase in hauling rates.
“We need regulation that, in this time of hyperinflation, help us with a trigger clause that automatically updates the tariff,” FETRA secretary Claudio Enri told Reuters on Oct. 18. Enri said the government last updated tariffs to account for inflation in July.
According to Reuters, more than 80% of Argentina’s agriculture production is shipped by trucks to ports, which means any potential strike could impact port activity.
Argentina is the world’s third-ranked soybean and corn exporter and is seventh in wheat exports, according to the U.S. Department of Agriculture. It is the world’s top soybean meal and oil exporter.
It already has been a difficult year for Argentina farmers as drought has cut the country’s soybean crop forecast to 36 million tonnes, a 37% drop from estimated output at the beginning of the year, according to a recent Global Agricultural Information Network report from the USDA.