- Competition between companies: It seeks to improve competitiveness between companies, giving more flexibility to operate in the road transport market.
- Transparency in management: Greater transparency in company data management, since certain information must be public so that it can be consulted at any time and by another company that requires it.
- Avoid intrusion: Strengthen the fact of hiring and billing only natural or legal persons that have a transportation permit. This measure is regulated with sanctions.
What modifications have been made to the LOTT?
The modifications that have been made to the LOTT are the following:- Suppression of fractional and complete loads, That is, the shipper is responsible for loading and unloading the merchandise, so he is responsible and must assume responsibility for said cargo.
- Shutdown regime: Transporters lose time and money for reasons beyond their control, so it has been regulated that for each hour of stoppage they will be charged €35.14 and for the day they will be charged €351.40.
- Payment system: By law, the shipper is the one who must pay the carrier unless there is a mutual and agreed upon agreement. The payment term is 30 days, unless a different term is agreed upon prior to transportation.
- The transport price It can be modified according to changes in the price of fuel, since we are talking about a direct expense that affects the cost of transportation.
What benefits does the LOTT offer?
As we have already indicated, the LOTT is adapting to the needs of the transport sector. The benefits it offers for transportation services are the following:- Fixed prices established by the Government with maximum rates.
- School and worker transportation can be combined to be able to cover school routes that were not previously done.
I am a transport company, what can I take into account about the
the Land Transportation Planning Act?
For a transport company, it is advisable to take into account the following:- Annual of Administration to bus companies with regular lines, which will increase their efficiency.
- Limit of 10 years to grant exploitation of a public transport route.
- It will be allowed to carry out all the procedures that have to do with the administrative issue of online form and, transportation can be carried out with a single authorization, instead of several.
What is LOTT insurance?
LOTT insurance is used exclusively for national road transport. These insurances protect the carrier, its Civil Liability contractual, in case there is any claim for damaged, deteriorated merchandise or loss during transportation. It covers the economic responsibility of the carrier for loss or deterioration of merchandise. That is, it covers everything that happens to the merchandise from the moment it is picked up at the loading location until it is delivered to the destination. Compensation is made as indicated by the LOTT, which establishes the value per kg of the merchandise according to the daily IPREM.In the event that the carrier is responsible for the loss of the merchandise or its deterioration, the LOTT will not cover the damages and the insurance will not be applicable.The advantages of taking out LOTT insurance are as follows:
The advantages of taking out LOTT insurance are the following:- Trust: Insurance that covers nationwide.
- Specialisation: It is exclusive insurance for land transportation of goods.
- Guarantee: It guarantees compensation in the event of a possible incident involving the carrier's civil liability.
- Adaptability: The insurance is adaptable to the merchandise to be transported, that is, to the volume of cargo to be transported and the specific needs of each transport.
Frequently Asked Questions about LOTT – Land Transport Management Law What is the LOTT and how does it affect a business hiring freight transport?
What is the LOTT and how does it affect a business hiring freight transport?
The LOTT (Law 16/1987 on Land Transport Regulation) governs the road haulage sector in Spain. For a business hiring transport: 1) It rules that the carrier must hold a valid transport licence. 2) It caps the subcontracting chain to one level. 3) It sets shipper responsibilities for loading and stowage. 4) It establishes maximum payment terms (60 days). Make sure your agency complies with the LOTT before signing.
What are the key updates from the latest LOTT reform that affect transport buyers?
The LOTT reform (Law 13/2021) introduced key changes: 1) Ban on loading/unloading by the driver (responsibility of shipper and receiver). 2) Mandatory payment within 60 days of invoice date. 3) Carrier’s right to update rates if diesel rises by more than 5%. 4) Shipper liability for cargo weighing. These reforms shift more responsibility onto the shipper. Adapt your operating processes accordingly.
What penalties does the LOTT impose for non-compliance and to whom do they apply?
The LOTT classifies infringements as minor (up to €400), serious (up to €6,000) and very serious (up to €18,000). Applicable to the carrier: overweight (€3,000-18,000), tampered tachograph (€4,000-18,000), missing transport licence (€4,000-18,000). Applicable to the shipper: hiring an unlicensed carrier (€2,000-6,000), late payment (€1,000-6,000). Inspectors carry out random roadside checks.
How does a business verify that its freight agency complies with the LOTT before signing?
Four mandatory checks: 1) Request the Transport Licence (MDP/MDL form) and check its validity in the Register of Transport Companies and Activities (REA). 2) Verify financial capacity (minimum share capital deposit: €9,000 for the first unit plus €5,000 additional). 3) Ask for clearance certificates from Social Security and the Tax Agency. 4) Check public liability insurance covering the full fleet (above €300,000).
Does the LOTT require a written contract with the freight agency or is the delivery note enough?
The LOTT does not formally require a written contract, but best practice is to sign an annual framework agreement with the agency setting out: rates, payment terms, loading/unloading responsibilities, CMR insurance, penalties. The delivery note or CMR proves delivery but does NOT replace the contract. Without a framework contract, the default LOTT rules apply in any dispute, which may not protect all of the shipper’s interests.
Need a Full Truckload (FTL) service?
At Transvolando we manage your freight with efficiency and reliability. Personalised quote in under 2 hours.
View serviceRequest a quote
