Brazil: Strikes at IBAMA and customs hinder exports

Source:
ITTO's Tropical Timber Market Report
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IBAMA went on strike in early May on pension plans for retirees and career rights for employees. New shipments were suspended as IBAMA was the entity authorizing timber transportation and exports. Only activities related to deforestation controls were operating. According to the Lumber Union in Sinop, Mato Grosso, at least 50 exporting companies had products waiting to be exported.

The Brazilian Association for Mechanically Processed Timber (ABIMCI) got a judicial guarantee of the companies’ right to export their products despite the strike. However, in Northern Mato Grosso, only nine companies are members of the association. Companies claimed that the halt of shipments and contracts have caused them financial losses and damage in market credibility.

The IBAMA strike was over in early June but traders reported backlog of work holding up the dispatch of consignments which, in some instances, had been at the docks for weeks awaiting shipment approval. Analysts say that it might take few weeks for transport to restart and shipments to get back to normal.

This situation has been compounded by strikes at the customs authorities in some ports, causing further delays in shipments. Storage at the ports was used at full capacity, leading to the blocking of additional deliveries.
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