Argentine grain truckers strike to urge higher rates amid harvest

"There are no negotiations currently underway," said Edgardo Aniceto, spokesperson of the Federation of Argentine Transporters (FETRA), adding that the strike had no definite timeline. About 85% of Argentina's grain volume is transported by truck from the fields to the country's ports, and truck traffic is particularly heavy during the second quarter of the year.

Truckers in Argentina started an indefinite strike on Monday to demand higher rates for transporting grain and livestock, which could hit grain exports during a key part of the harvest.

Argentina, the world's leading exporter of soy derivatives and second-largest exporter of corn, recently started harvesting both grains. "There are no negotiations currently underway," said Edgardo Aniceto, spokesperson of the Federation of Argentine Transporters (FETRA), adding that the strike had no definite timeline.

About 85% of Argentina's grain volume is transported by truck from the fields to the country's ports, and truck traffic is particularly heavy during the second quarter of the year. Although truckers, the government, and rural associations agreed on new rates for grain transportation in early February, FETRA said in a statement increases in the price of diesel have made it "impossible to continue working under reasonable conditions."

The South American country has been suffering from soaring inflation for years, which has been exacerbated over the past month by Russia's invasion of Ukraine. According to a poll of analysts by the Argentine central bank, inflation in March could reach 5.5%. This is on top of 4.7% registered in February and 3.9% in January when the last transportation rate was negotiated.

FETRA has also complained about fuel shortages, and national oil company YPF responded by boosting gasoil supplies to their highest levels in a decade earlier this month. Grain exporters in Argentina usually have reserves to keep operations running, but if truck deliveries to ports stop for several days, cargo ship deliveries could be affected.

The Buenos Aires grains exchange estimates a yield of 42 million tonnes of soybean and 49 million tonnes of corn for the current harvest.