Brazil Updates Minimum Freight Floor Rules

What Does the New Freight Floor Law Actually Change?

President Lula signed the new minimum freight floor legislation on Wednesday (August 5) at a ceremony at the Palácio do Planalto in Brasília, attended by ministers and truckers' representatives. The law updates the methodology used to calculate the minimum freight rate, strengthens enforcement, and increases penalties for non-compliance.

What Are the New Penalties for Violations?

Companies and operators who fail to comply with the minimum freight floor now face much stiffer consequences. Repeat offenders can be hit with fines of up to R$1 million, and transport operators risk having their registration cancelled. The National Land Transport Agency (ANTT) retains full regulatory authority over enforcement.

What Did Lula Veto — and Why?

Lula vetoed several provisions added to the bill during its passage through Congress. Most notably, he struck down an amnesty clause for truckers who blockaded highways in 2022 following Lula's election victory over Jair Bolsonaro. That clause was inserted by the bill's rapporteur, deputy Zé Trovão (PL-SC), and was considered a "jabuti" — a common Brazilian term for unrelated riders added to legislation.

Also vetoed were provisions that would have relaxed vehicle weight enforcement limits, converted weight-violation fines into mere warnings, and allowed penalties for breaching the minimum freight policy to be downgraded to warnings rather than fines.

Why Was This Law Introduced?

The legislation originated as an emergency decree issued by the government in March, after trucking leaders threatened a new strike over rising diesel prices driven by Middle East conflicts. Congress converted it into a full bill, which passed last month. At the signing ceremony, Lula called on truckers to report any violations. "If you don't report it, we won't know," he said.