Road freight transportation involves responsibilities covered by liability insurance, according to the Land Transport Regulations (LOTT). This law is exclusively applicable to land transport. LOTT gave rise to the Land Freight Transport Contract Law (LCTTM), which regulates contracts in this type of transportation and seeks to update its legal framework.
LCTTM establishes a contract between two companies, where the shipper undertakes to transport goods to a location and make them available to the consignee in exchange for a price.
Types of contract according to the LCTTM
According to the LCTTM, this type of contract regulates the obligations of each party when the goods are being transported, including temporary stays, i.e. storage, until they reach their final destination.
If it were a permanent storage contract, it would also be included, but it would not be part of an intermediate point of transportation, i.e., that is the final chain of the product since it remains permanently in a warehouse.
According to LCTTM, who are the parties to a contract of carriage and what are the formal elements?
Several parties are involved in the transportation process. The shipper, who contracts the transport, the consignor, who receives the goods, and the carrier, who performs the transport and assumes legal responsibilities.
If the carrier is not the actual transporter, they become the shipper, and the actual carrier assumes their responsibilities. Finally, there is the consignee, who receives the goods without being part of the transport contract but assumes rights and obligations if the goods are not delivered on time.
How is a contract formalized?
The law requires a bill of lading to formalize a consensus agreement. If one of the parties refuses, the agreement is considered abandoned, and indemnities can be applied according to the LCTTM. The bill of lading or CMR, used in transport, confirms the receipt of the goods and their contents once signed by both parties.
How much does your shipment cost?
Request your quote in less than 3 minutes with just one click.
