STF forms a majority on cargo insurance by carriers

The STF (Brazil’s Supreme Federal Court) has formed a majority of votes to determine that the obligation to purchase cargo insurance falls on the carrier. The decision has a direct impact on the transport and logistics sector in Brazil, redefining insurance responsibilities in the movement of goods.

The context of the STF decision

The formation of a majority in the STF indicates that most of the Court’s justices have already voted in favor of the thesis that the transport company, and not necessarily the owner of the goods, holds the primary responsibility for purchasing the insurance policy against transport risks. Cargo insurance is the legal and financial instrument that protects the value of transported goods against loss, damage, or theft during transit.

Although the majority is already formed, the trial may still undergo developments before its formal conclusion and the publication of the appellate decision (the final written ruling).

The position of the CNI

Given the progress of the trial in the Supreme Court, the CNI (National Confederation of Industry) intervened in the process. The entity representing the industrial sector requested that the trial be postponed for 180 days.

The CNI’s central argument for the suspension request is the existence of ongoing legislative proposals in the National Congress that address the same topic. The confederation argues that the debate within the Legislative Branch should be awaited, thus preventing a final judicial decision from conflicting with a potential new law on cargo transport insurance.

Perspectives for the sector

The definition of who must purchase the insurance affects cost structuring, freight pricing, and risk management in logistics operations. Companies operating in the supply chain, whether shippers or carriers, should monitor the conclusion of the STF trial and the progress of the bills in Congress to adapt their commercial practices and transport contracts to the new legal guidelines.

This content is for informational purposes only and does not constitute legal advice. For guidance on specific matters, consult a qualified lawyer.