Brazil Enacts Law Guaranteeing Minimum Freight Rates for Truckers

Brazil has enacted a new law, sanctioned on Wednesday (day 5), that guarantees minimum freight rates for cargo transport by road. The law strengthens oversight of freight payments and combats illegal merchandise trade. It mandates the presentation of the Transport Operation Identifier Code (CIOT) before a truck begins its journey. According to the National Land Transport Agency (ANTT), the CIOT ensures that all freight contracts pay the minimum floor; otherwise, the code will not be issued and irregular freight will be blocked at the contracting stage. The code is linked to the Electronic Fiscal Documents Manifest. ANTT states that enforcement of the new rules will be automatic and large-scale.

Global Impact

Economically, the law formalizes Brazil's road freight market, potentially increasing transparency and reducing losses from illegal trade, which could improve fiscal collection and supply chain reliability. Politically, it reinforces the government's support for truckers, a key constituency, ahead of elections.