Anuário da Indústria de Implementos Rodoviários 2021

72 ARTIGO | ARTICLE | ARTÍCULO B razil’s logistics market is worth an estimated $ 70 billion, almost equivalent to Uruguay’s GDP. This alone demonstrates the importance of the sector to Brazil’s economy. No fewer than 200,000 companies operate in road haulage, most of them small and medium-sized companies. And job creation in the sector is as relevant as its participation in the economy. The sector is also an economic barometer, depending as it does on levels of business. If retail booms, the demand for transportation of inputs and goods also grows. If agribusiness thrives, produce needs to get to domestic and international markets. The inverse is true. The economic downturn in other sectors will affect the road transport sector. A fall in the movement of goods means fewer deliveries and a fall in profitability. If in this scenario issues such as fuel and maintenance costs fall, costs such as tax and labor are fixed, affecting the liquidity of the business. Added to these particularities of the road transport sector was the variable that overwhelmed the world in 2020 - the COVID-19 pandemic. The measures adopted at various levels to tackle the virus had an acute and immediate effect on the economy. Any non-essential activity in Brazil was initially shut down, and consumer habits changed. Little by little, with the lockdown restrictions in place, e-commerce became part of life. The fall in the number of infections, little by little, resulted in fewer restrictions from the second semester. Some sectors recovered earlier than expected, and cargo transport began to return to normal gradually. The government lowered interest rates and created incentives for fleet renewal, and, in this brief moment of optimism, sales of heavy vehicles picked up. Production, however, could not keep up with demand after months of lockdown and news sanitary protocols. Waiting lists for brand new trucks grew longer, and demand for used vehicles increased, pushing up prices for both markets. Added to these factors were significant changes in the cost of freight. With spiraling deaths in the country and failures in vaccination, lockdown was imposed again in early 2021, raising concern among businesspeople. Fuel prices skyrocketed, and there was a shortage of components. Tighter restrictions could reduce the volume of cargo transported, dragging down revenues in the sector. In this context, financial and operational difficulties have snowballed. Loans for vehicles involve repossession in the event of default, inflation has further increased operating costs, and cargo handling volume is down. Fortunately, in a global crisis, as opposed to a sector-specific one, renegotiation is easier. The natural pursuit of liquidity in a trading environment riddled with default to minimize losses gives way to maximizing gains, offering greater flexibility. The same is true regarding repayment terms. Financial institutions and large suppliers know that unpredictability and stagnation are much more harmful to small and medium-sized entrepreneurs, and they make concessions. FINAME has been involved in renegotiation for programs supported by the BNDES and other banks. It would not be reasonable to reverse this trend in a deepening pandemic. Negotiation is preferable to a lack of flexibility or lawsuits. Advice from professionals with experience in business crises is essential. Such negotiation involves complex issues that affect more than the commercial sphere. Discussions regarding the acquisition of vehicles also tend to be affected. Widespread default makes the seizure of assets unattractive, and such factors weigh in business and legal scenarios. These considerations apply to both individual issues between a company and financial or commercial partners and collective situations, sometimes involving all the partners in a company, to prevent a worsening of the crisis. In cases where the company is unable to comply with contracts, Law 11.101/2.005 helps businesses stay afloat. Court-supervised recovery (extrajudicial recovery has become more common, also, after recent legal reforms) involves multiple negotiations that aim to approve a recovery plan capable of serving the interests of creditors and keeping the company in business. Transport companies, therefore, have the means at their disposal to tackle the instability resulting from the pandemic and to continue playing an essential role in getting the Brazilian economy moving. Business flexibility By Paulo Calheiros Lawyer specialized in Bankruptcy Law and Corporate Recovery and Restructuring. CEO and majority partner of Mandel Advocacia. In a scenario of instability, companies, creditors, suppliers, and customers find solutions.