USP study proposes changes to Brazil's freight floor price

A study by the University of São Paulo (USP) suggests that the current methodology used by the National Land Transport Agency (ANTT) to calculate minimum road freight rates may systematically overestimate costs. Researchers from the Esalq-Log group identified 17 areas for improvement in the calculation model.

Key proposals include increasing the monthly working hours used in calculations from 181 to 220 hours to better reflect actual vehicle and driver availability. Additionally, the study suggests adjusting depreciation and capital return parameters, noting that the current seven-year economic life for vehicles does not align with the Brazilian fleet's average age of 16.4 years.

Simulations indicate these changes could reduce freight floor prices by an average of 7.6%. For grain transport specifically, the reduction could range between 6.38% and 11.04%, depending on distance and truck configuration. The Parliamentary Agriculture Front (FPA) is using these findings to advocate for regulatory changes following recent legislative updates to the National Policy for Minimum Road Freight Floors.