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Uruguay: more activity but costs rising

In early April, Uruguay’s President Luis Lacalle announced the end of a two-year national health emergency associated with the pandemic. The decision means a number of changes such as an end to the compulsory wearing of face masks and relaxation of COVID testing rules. It has also brought a lot of work and thus scrap generation, which is good news given that activity levels had been fluctuating for the previous year and a half.

However, when we think the freight situation cannot get any worse, it does: not only are costs rising every month but also space is incredibly scarce for some destinations, thus leading to difficulties in delivering products and keeping inventory levels very high.

All this is creating excellent conditions for smugglers who collect recyclables without incurring taxes and other costs, and then send them to Brazil by truck. This is a big concern for our future.