Brazil's Freight Law: What Changes in 2025

What Does the New Freight Law Actually Change?

Brazil's new Freight Law (Lei do Frete), signed into law this week by President Luiz Inácio Lula da Silva, converts temporary freight regulations — in place since March — into permanent rules. The core change is the mandatory use of the CIOT (Código Identificador da Operação de Transporte), a tracking code that registers every freight operation and helps enforce the minimum freight rates set by Brazil's land transport regulator, ANTT.

What Does the CIOT System Do?

The CIOT mechanism was created to increase oversight of freight contracts and ensure carriers are paid at least the minimum floor rates established by ANTT. By making it permanent, the government aims to crack down on below-minimum-rate contracting, which had been a key grievance of truck drivers in past strikes.

What Did President Lula Veto?

Congress added several provisions during the bill's passage that Lula subsequently blocked. The most significant veto eliminates an amnesty for fines handed to truckers, companies, and drivers who participated in road blockades following the 2022 elections. The government argued that wiping out those penalties — including fines already handed down by courts — would violate the constitutional principle of separation of powers and the legal concept of res judicata (final court rulings). A second veto blocked a provision that would have converted fines for non-compliance with minimum freight rates into mere warnings, which the government called an unjustified waiver of administrative penalties and revenue.

What Happens to the Vetoes Now?

The vetoes now go back to Congress, which can uphold or overturn them. In the meantime, the approved sections of the law — permanent CIOT registration and minimum-rate enforcement — are already in effect.