
Excessive Federal intervention over the last decade prompted expansion of the Brazilian trucking sector, which grew more than its squeezed-margin roots could support. When a recession hit the oversupplied sector in 2014-2016, freight rates plummeted, and truckers paid the price. After May’s mega strike, Federal actions tried to alleviate the symptoms effectively appeasing truckers nationwide. Yet, in our view, these measures do little to address the root causes of the problem.