What is an LCTTM?

The transport of goods by road involves responsibilities covered by liability insurance, according to the Land Transport Management Law (LOTT). This law applies exclusively to land transportation. The LOTT gave rise to the Land Transport of Goods Contract Law (LCTTM), which regulates contracts in this type of transport and seeks to update its legal framework. The LCTTM establishes a contract between two companies, where the shipper undertakes to move goods to a place and make them available to the recipient in exchange for a price.

Types of contracts according to the LCTTM

In this type of contract, according to the LCTTM, the obligations of each party are regulated when the merchandise is being transported, including temporary stays, that is, storage, until it reaches its 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, that is, that is the final chain of the product since it remains permanently in a warehouse.

According to LCTTM, who is involved in a transport contract and what are the formal elements?

Several parties are involved in the transportation process. He shipper,, who hires the transport, the consignor, who receives the merchandise, and the carrier, which carries out the transportation and assumes legal responsibilities. If the carrier is not the actual carrier, it becomes the shipper, and the actual carrier assumes its responsibilities. Finally, there is the consignee, who receives the merchandise without being part of the transport contract, but assumes rights and obligations if the merchandise is not delivered on time.

How is a contract formalized?

The law requires a bill of lading to formalize a consensual agreement. If one of the parties refuses, the agreement is considered to be abandoned and damages may be applied under the LCTTM. The consignment note or CMR, used in transportation, confirms receipt of the merchandise and its contents once signed by both parties.

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Frequently Asked Questions about LCTTM – Land Transportation Contract Law

What is the LCTTM and how does it differ from the LOTT?

The LCTTM (Law 15/2009 on the Land Transport of Goods Contract) regulates transport contracts: contractual relationship between shipper, carrier and recipient. The LOTT regulates the activity and authorization of the sector. Summary: LOTT = "who can transport"; LCTTM = "what obligations do the parties have?" Both are applied simultaneously in any national transport.

What liability does the carrier take on under the LCTTM for damage or loss of goods?

The LCTTM sets the carrier’s liability from the moment they receive the goods until delivery. Maximum compensation: 1/3 of the daily IPREM per kilo lost or damaged (around €21/kg in 2026). Exceptions that release the carrier: act of God, force majeure, inherent vice of the goods, erroneous shipper instructions, insufficient packaging. To claim: 14 days from delivery for non-apparent damage.

What obligations does the LCTTM impose on the shipper and why do they matter to a B2B manager?

The shipper must: 1) Hand over goods properly packaged and labelled. 2) Provide the carrier with all necessary customs and sanitary paperwork. 3) State weight, nature and special precautions. 4) Not deliver hazardous goods without declaring them. 5) Pay within the legal term (60 days). Shipper non-compliance releases the carrier from liability. Make sure your processes meet these points.

Does the LCTTM allow or limit penalty clauses for delivery delays?

The LCTTM allows penal clauses for delay but limits compensation to the price of transportation (on the affected delivery). For higher compensation, an express declaration of the value in the contract is required (declaration of "special interest in delivery"). B2B recommendation: agree on an express deadline in the framework contract with the agency + penalty clause for delay. Without an express agreement, compensation for delay is usually <50% del coste del transporte.

How does the chain of liability work when there is subcontracting under the LCTTM?

The LCTTM allows subcontracting but caps the chain to one level (the contracted carrier can subcontract to a single effective carrier). The shipper can claim against both the contracted carrier and the subcontracted one (joint liability). To protect yourself: 1) Require the contracted carrier to disclose the subcontractor’s name. 2) Verify both parties’ CMR insurance. 3) Agree a no-subcontracting clause for high-value cargo.

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