What changes are foreseen in the Transport Chain Law?
On 29th May 2023, the Prime Minister of Spain announced the dissolution of the General Court and the calling of elections. A decision that paralysed the processing of laws in the Spanish Parliament. Among them, the law on the freight transport chain, which was enacted as a royal decree in mid-2022. Here we would like to explain the main changes contemplated in the text.
Transport chain law
The so-called transport chain law is articulated in Royal Decree-Law 14/2022 and its objective, as its name suggests, is to regulate the road and maritime transport industry. Its primary aim is to prevent freight from being carried at a loss by providing for pre-determined contracts whose price covers minimum costs and expenses. A key measure to ensure fairness in the trade sector.
Its primary aim is to prevent freight from being carried at a loss by providing for pre-determined contracts whose price covers minimum costs and expenses.
Foreseen changes in freight transport
This is undoubtedly the main change envisaged by the transport chain law. However, it also provides for the creation of a register or consignment note for each consignment whose value exceeds 150 euros.
This document must contain various data, such as the name or company name, VAT number and address of the shipper and the sender. The same applies to the place, date and time of receipt, the nature of the goods and the name and location of the receiver.
But what happens if this requirement and the rest of the requirements set out in the law are not met? The law provides for significant penalties of up to 4,000 euros.
As if that were not enough, the Spanish government plans to create a regulated pricing structure through the Transport Ministry, Mobility and Urban Agenda. In addition, the law will include a Code of Good Commercial Practices in Transport Contracting
Boosting the freight transport sector
The law does, however, provide for substantial financial support for the freight transport sector. In total, they will be made up of a fund of 450 million euros, which will be distributed heterogeneously.
For example, taxi and VTC drivers will be eligible for a maximum of 300 euros, while those who carry heavy goods in their lorries will be eligible for up to 1250 euros. Unsurprisingly, all players in the sector are impatiently awaiting its approval and definitive implementation.
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