[Brazil] Riots: Violent demonstration

Supply-chain Risk Briefing

1. Summary

On March 20, resident protests demanding road infrastructure improvements occurred near Montealegre in Rio Grande do Norte state, Brazil. Protesters blocked roads on the RN-002 highway through tire burning and other methods, but the incident is classified as 'low' grade and assessed as sporadic and localized in nature.

2. Supply-chain impact

• Regional logistics disruption: The RN-002 highway is a major road connecting the interior and coastal areas of Rio Grande do Norte state, with potential temporary delays in regional freight transport during the protest period
• Agricultural transport route impact: The area is part of Brazil's northeastern agricultural belt, and road blockages from protests could cause short-term disruptions to the transport of agricultural products such as grains and fruits to ports
• Limited ripple effects: Expected minimal national-level supply chain impact as it is distant from Brazil's major export corridors (Midwest-Santos port, North-Paranagua port)
• Concerns over infrastructure protest spread: If road infrastructure complaints spread to other regions within Brazil, they could act as intermittent risk factors for the overall transportation network

3. Watch points

• Protest persistence and spread: Need to track the normalization status of the RN-002 road and the potential for additional similar infrastructure protests within Rio Grande do Norte state
• Government response: Monitor the impact of road infrastructure improvement commitments and follow-up measures by the Brazilian federal or state government on resolving regional grievances and preventing additional protests