The legal obligations of freight carriers
Whether you're a carrier, an entrepreneur, or simply interested in the world of freight transportation, understanding your legal responsibilities is not just about avoiding fines: it's key to ensuring the sustainability and reputation of your business.
From issuing proper documentation to complying with road safety regulations, the obligations of carriers are varied and often complex.
Failure to comply can not only jeopardize your operations but also affect the trust of your clients and the continuity of your contracts. Moreover, in an increasingly regulated and competitive environment, staying up to date with legislation is an advantage you cannot afford to ignore.
Are you concerned about staying compliant with all the regulations and avoiding costly penalties? Please keep reading to discover how to ensure your freight reaches its destination not only on time but also in full compliance with the law.
Who Regulates Freight Transportation in Mexico?
In Mexico, freight transportation is a key activity for the country's economy, moving products across the territory and connecting production centers with national and international markets.
However, to guarantee the safety, efficiency, and legality of this activity, there is a regulatory framework that oversees and sets the rules that companies and carriers must follow.
First and foremost, the Secretariat of Infrastructure, Communications, and Transportation (SICT) is the main authority responsible for regulating the movement of goods within the country.
This entity is tasked with creating and enforcing policies, regulations, and standards governing all aspects of land, sea, and air freight transportation.
Among its duties are issuing permits for carriers to operate, overseeing compliance with safety regulations, and coordinating with other government bodies to ensure the activity is conducted according to established guidelines.
Within the SICT, the Federal Motor Transport Directorate (DGAF) plays a crucial role in land transport. This office is responsible for issuing operational licenses for vehicles and drivers, checking the mechanical condition of vehicles, and ensuring compliance with rules on weight, dimensions, and cargo.
Additionally, the DGAF inspects and supervises motor transport businesses to ensure all operate within the legal framework.
On the other hand, the Secretariat of Finance and Public Credit (SHCP) also plays a significant role in regulating freight transportation, especially regarding fiscal obligations.
Through the Tax Administration Service (SAT), the SHCP ensures compliance with tax obligations related to the issuance of electronic invoices for transport services, payment of the corresponding taxes, and meeting the requirements for customs documentation when it comes to international transport.
For maritime transport, the General Coordination of Ports and Merchant Marine, also part of the SICT, regulates the shipping of goods by sea. This entity oversees the ports, ensures compliance with safety regulations on vessels, and issues permits for operations in national waters.
In the context of international transportation, the Secretariat of Economy is involved in regulating foreign trade and the legal texts affecting the movement of goods across Mexico's borders.
This department works in collaboration with the SICT and SHCP to ensure that exports and imports are conducted according to both Mexican and international laws, including trade agreements and treaties.
What Law Regulates the Transportation Contract?
In Mexico, the contract for the transportation of goods is mainly regulated by the Federal Roads, Bridges, and Motor Transport Law (published on December 22, 1993).
This law sets the general rules that carriers operating within national territory must follow. Some of the key points include:
- Operational regulations: Establishes statutes for the operation of cargo and passenger vehicles, ensuring they meet safety and efficiency standards.
- Licenses and permits: Carriers must obtain the necessary documents to operate, which involves staying up to date with technical and administrative requirements.
- Infrastructure: Also regulates the construction and maintenance of roads and bridges, which can impact the quality of routes used, affecting delivery times and costs.
- Tariffs and charges: Sets rates for the use of roads and bridges, influencing operational costs and, consequently, the amounts carriers charge their clients.
- Road safety: Promotes measures to reduce accidents and improve the protection of carriers and their cargo.
- Sanctions: Includes provisions that require carriers to stay aware of their obligations to avoid fines.
Thus, the contract is more than just an agreement between two parties. It is a legal document that ensures goods will be delivered at the agreed time and in the agreed manner.
For example, if an accident occurs during transportation or the goods are damaged, the document, backed by the law, will determine the responsibilities and potential compensations.
Legal Obligations of Freight Carriers
In Mexico, some of the legal obligations of freight carriers include several key aspects:
- Safekeeping of documentation: Every document provided by the client has a specific purpose, whether to facilitate customs procedures, verify ownership of the goods, or ensure compliance with applicable regulations. Loss or damage to these documents can have serious consequences, such as delivery delays, legal sanctions, or even the loss of client trust. It is essential to handle them with utmost care and keep them in good condition throughout the journey.
- Payment collection and delivery guarantees: In certain agreements, the carrier is not only responsible for transporting and delivering the goods but also for collecting payments on behalf of the client. This role adds a layer of responsibility, as it involves handling money securely and according to the agreement. Any discrepancy can affect the client relationship.
- Following instructions: It is important to remember that until delivery, the goods remain the property of the client. This means that any decision the carrier makes must align with the instructions received. For example, if specific handling or storage conditions have been specified, it is imperative to follow them to the letter.
- Subcontracting and third parties: At times, the support of other professionals or companies is necessary to complete the transport. However, this action does not absolve the carrier of responsibility toward the client. Any issue, be it a delay, damage to the goods, or loss, must be addressed by the carrier.
- Waybill: As mentioned in other instances, this document details key information such as the goods’ data, origin, destination, and the means of transport used. Therefore, it is mandatory in many cases and serves as a guarantee for the parties involved. Even when the Waybill is not required in a particular case, its use is recommended as it helps resolve disputes that may arise.
- Verification of goods and packaging: Before any transport begins, the carrier must perform a thorough inspection. This initial check not only ensures that the goods are in good condition but also protects the carrier from potential future claims.
- Procedure in case of delivery issues: If the carrier cannot deliver the goods to the final recipient, whether due to contact problems or lack of clear instructions, they must store the cargo in a secure place. However, their responsibility does not end there, as they remain liable until the situation is resolved and must act diligently to ensure the cargo is protected.
- Compliance with itinerary: Agreeing on a route with the client helps optimize time and minimize risks associated with transport. Nonetheless, the carrier must be prepared to deal with unexpected events, such as adverse weather conditions or unexpected traffic. In such cases, decisions should prioritize the safety of the goods while adhering to the agreed timelines as closely as possible.
- Choice of transportation method: The carrier must evaluate the characteristics of the cargo, such as its size, weight, and fragility, and select the best method suited to these needs. This process not only minimizes the risk of damage but also ensures that the goods arrive in optimal conditions, meeting the client’s expectations.
- Coordination of vehicle availability: The carrier and the client must clearly agree on the time and place where the vehicle will be available for loading.
Any delay or misunderstanding in this aspect results in significant time and financial losses, affecting operational efficiency and client satisfaction.