Brazil President Lula sanctions minimum freight law, vetoes driver amnesty

Brazilian President Luiz Inácio Lula da Silva has sanctioned a new law establishing a minimum freight rate table for cargo transport, while vetoing a provision that would have granted amnesty to truck drivers. The vetoed section aimed to nullify approximately R$ 7.1 billion in administrative, civil, and judicial fines imposed by the Supreme Federal Court following highway blockades after the 2022 elections. The government argued the amnesty was unconstitutional and violated the principle of separation of powers.

The new legislation mandates the use of the Transport Operation Identifier Code (CIOT) to validate freight values before every trip and imposes stricter penalties—including fines up to R$ 1 million—for companies that hire transport below the minimum floor set by the National Land Transport Agency (ANTT).

The period of legislative uncertainty regarding these rules caused significant volatility in the logistics sector. Data indicates that available cargo volumes dropped by as much as 40% as market players delayed shipments, causing products to remain stalled in storage silos, particularly within the agribusiness sector in regions like Mato Grosso.