Update of minimum freight
for road transportation of cargo
In compliance with the provisions of the National Policy on Minimum Freight for Road Transportation of Cargo ("Minimum Freight Policy"), established by Provisional Presidential Decree No. 832 of May 30, 2018, and converted into Law No. 13703, as of August 8, 2018, the Brazilian National Land Transportation Agency ("ANTT") amended Resolution No. 5.827, thereby updating the minimum freight prices (click here to access the content of the tables).
The update of the minimum values for freight was the response given by ANTT to the 13% adjustment on the price of diesel oil at the refineries, as announced by Petrobras on August 31, 2018.
It is worth emphasizing that since its publication, the Minimum Freight Policy has been challenged by several entities, including before the Judiciary.
Currently, three Direct Action of Unconstitutionality (ADI Nos. 5956, 5959 and 5963) are pending before the Federal Supreme Court (STF).
By virtue of a decision rendered within the scope of the STF, all other ordinary lawsuits that address the unconstitutionality or suspension of effectiveness of the aforementioned Minimum Freight Policy are suspended, including the effects of any preliminary injunctions granted.
Following a public hearing, held on August 27, 2018 at the STF, with participation restricted to those who appear as parties to said Direct Action of Unconstitutionality, the Rapporteur Justice Luiz Fux maintained the order to stay the lawsuits and injunctions until the matter is decided, which, unfortunately, has no deadline to take place.
Compliance with the Minimum Freight Policy is mandatory under the Law, and failure to comply with it will subject the violator to penalties.
According to information provided on the ANTT website, the agency has been closely monitoring the road transportation of cargo by means of several inspections.
Demarest Advogados is monitoring the developments of the Minimum Freight Policy and the actions currently pending before the STF, and it is at the disposal of its clients for any required assistance regarding this matter.