Brazil’s customs auditors have declared a five-day “zero clearance period” at the Port of Santos from June 2 to June 6, during which no physical inspections will occur. This decision, communicated to clients by logistics company Unimar, escalates the ongoing strike that started in 2024 and has significantly disrupted logistics at Latin America’s largest port.
The Port of Santos is vital for the movement of essential chemicals, industrial goods, and fertilizer imports that support Brazil’s robust agricultural industry. Unimar’s letter highlighted that while most cargo is cleared automatically under normal circumstances, the strike will primarily affect cargo needing physical inspections.
Typically, clearance times for imports at Santos range from five to seven days, while exports take one to two days. The new action plan may lead to delays for goods requiring such inspections.
As this strike nears its one-year mark, it has become one of the longest protest actions by civil servants in Brazil’s history. Initially beginning as small strikes in mid-2024, it escalated into a broader two-month stoppage.
The union representing tax auditors is advocating for salary increases and improved working conditions, including necessary repairs and upgrades to aging customs facilities. Meanwhile, President Luiz Inácio Lula da Silva’s government is focused on managing spending, fueling investor concerns regarding the fiscal deficit.
The ongoing strike is also raising alarm among chemicals producers. Companies involved in the transport of perishable goods or items requiring rapid delivery, such as pharmaceuticals and food products, are particularly affected by rising logistics costs.
The Brazilian Association of Distributors of Chemical and Petrochemical Products, represented by president Rubens Medrano, noted potential safety issues if storage capacities for certain chemicals are overburdened. Concerns also loom over the impact of the strike on the upcoming implementation of Brazil’s New Import Process on the Single Foreign Trade Portal, expected to roll out in phases, including a critical stage in the second half of 2025.
If successful, this new system could save the economy approximately R$ 40 billion ($7.07 billion) annually by halving existing delivery times. However, disruptions from the strike may hinder its successful deployment.
The Santos Port Authority has not provided any comment on the situation as of the latest update.