Amid rising diesel prices, Conab to suspend fines and relax freight deadlines
Conab in Brazil is expected to relax freight contract terms and suspend penalties for carriers due to rising diesel prices resulting from the Iran conflict.
The Brazilian National Supply Company (Conab) plans to adjust freight contract conditions, particularly for corn transport, in response to pressures from transport companies facing increased fuel costs due to the ongoing conflict in Iran. Although Conab is hesitant to raise freight rates, they recognize that the rising price of diesel is complicating the logistics of delivery, leading them to consider suspending penalties for carriers unable to meet previously agreed delivery schedules.
Conab has confirmed that they are examining adjustments to freight service contracts to ensure the continued operation of the Direct Sales Program (ProVB), which is designed to supply corn to small animal producers. This potential relaxation of rules will be evaluated on a case-by-case basis, allowing for flexibility in contracting practices to ensure that food supply chains remain intact despite rising operational costs.
From December 2025 through March of this year, Conab conducted four public freight auctions specifically for corn transportation. These measures indicate Conab's proactive approach to address the challenges faced by freight carriers amidst fluctuating fuel prices and suggest an awareness of the pivotal role these adjustments play in sustaining agricultural supply chains in Brazil.