There has been no progress in negotiations between the Customs officer union and the Federal Government. Please note the Customs strike has spread to include all ports in Brazil.

Santos is the major port in Brazil on both export and import movement. Santos is experiencing more severe consequences. Terminal yards are becoming full due to the slow pace of cargo clearances. It has reached a critical point where export cargoes are facing difficulties to get through the terminal entrance due to the limited space on the terminal yard.

Further complicating the freight release is the introduction of the new SISCARGA regulation. This is the new system to monitor Customs control of arriving freight which started April 1, 2008. There is indication that the system is not working properly and not enough staff to resolve the problems.

This strike (slowdown) is affecting the air mode of transport as well.

According to the local press, there is no prediction when the strike will come to an end. They fear this strike will reach the same stature as occurred 2 years ago. That slowdown operation was conducted for 2 months.