mexican trucks in america are a fact.

[purgoose10]

Everyone should read this law. Mexican truckers cannot compete with us on American soil. Anothers words they cannot legally solicate freight on this side of the border. 99% of them are taking the freight to the Dallas area to be transhipped on american carriers. As soon as I can I will paste a copy of the law.

 

[Turtle]

3:1 or 50:1, it really doesn't matter. The rate comparison between the US and Canada are roughly the same, more or less on par with each other, but the comparison of rates between the US and Mexico are not even close. The cost per mile to move freight in Mexico is about one-third that of moving freight in the US or Canada. So, every truck from Mexico that crosses into the US equals three US trucks, so that 3:1 becomes 1:1, which creates a downward trend of 1:3. And that begins to double to a 1:6 downward trend for every load that is no longer cross-docked at a freight forwarder. Within a few years there could very well be pressure, because of the reduced costs, to allow point-to-point freight movement within the US by Mexican trucks.

 

[paullud]

Everyone should read this law. Mexican truckers cannot compete with us on American soil. Anothers words they cannot legally solicate freight on this side of the border. 99% of them are taking the freight to the Dallas area to be transhipped on american carriers. As soon as I can I will paste a copy of the law.

I haven't seen anything like that, are you thinking of cabotage laws? That would only restrict them from picking up a load in Dallas and running it to Nashville. They can still take the load you would have picked up in Laredo run it to Detroit, then the load you would have picked up in Toledo going to Laredo goes on their truck instead. Also let's not forget about the Super Highway they are trying to construct.

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[purgoose10]

Read this.Transplace Industry Blog - Progress on U.S. and Mexico cross border trucking

 

[paullud]

Read this.Transplace Industry Blog - Progress on U.S. and Mexico cross border trucking

I tried to open it but it is not working for me. Can you try it again?

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[Turtle]

I tried to open it but it is not working for me. Can you try it again?

Worked for me, but here it is...

Progress on U.S. and Mexico cross border trucking
Posted By: Tom Sanderson
Date Posted: Tuesday, July 19, 2011 1:19 PM

The United States and Mexico signed an agreement on July 5 to allow cross-border trucking and to eliminate the retaliatory tariffs Mexico placed on U.S. goods after we violated our NAFTA agreement to implement a trucking program. The Mexican side of the agreement is straightforward. Fifty percent of the tariffs are to be eliminated 10 days after signing the agreement and the remainder within 5 days of the first Mexican trucking company receiving its U.S. operating authority.

The Department of Transportation has specified strict but reasonable requirements on Mexican truckers wishing to operate north of the border. Among the requirements are complying with all Federal Motor Vehicle Safety Standards and using electronic monitoring systems to track hours-of-service compliance (EOBRs to be paid for by the FMCSA). All participating Mexican drivers will be required to demonstrate an ability to understand English and U.S. traffic signs. The U.S. Department of Transportation will review the complete driving record of each driver and require all drug testing samples to be analyzed in Department of Health and Human Services-certified laboratories located in the United States.

Mexican fleets passing the initial test will be granted provisional authority and will be inspected each time of entry in United States. After 18 months of safe performance (determined by a DOT performance evaluation and comprehensive review), a Mexican carrier can be granted permanent operating authority. Mexican motor carriers with provisional authority that participated in the 2007 pilot project and with safe operations will receive credit for the months operated and will be exempt from stage 1 inspection.

The agreement also requires that Mexico provide reciprocal authority for U.S. carriers to engage in cross-border trucking, but there is little likelihood of any U.S. carriers pursuing that authority.

This is a very positive outcome and a surprising resolution to an issue that was and still is adamantly opposed by organized labor and owner operators. From a practical standpoint, Mexican carriers are not likely to be overly aggressive in moving products into the interior of the U.S. because once here, they can only haul freight back to Mexico. (Note that this is the same requirement for U.S. or Canadian truckers moving freight across our northern border.) It will be challenging for Mexican carriers to gain access to the southbound freight unless they have relationships with U.S.-based 3PLs, truck brokers, or directly with shippers. At Transplace, we think the best opportunities will be to use Mexican carriers to bring freight further inland, such as to Dallas, where there is a greater likelihood of getting return loads to Mexico. We welcome the opportunity to work with many of the excellent Mexican trucking companies we work with inside of Mexico to take advantage of this new cross-border agreement. With the looming capacity shortage in the TL sector, we are pleased to finally see a government program that may actually increase trucking capacity.

Numerous groups have spoken out in support of the deal including the American Trucking Association, the U.S. Chamber of Commerce, and the National Association of Manufacturers.

 

[paullud]

Worked for me, but here it is...

OK so it is not a law but someone taking a guess at what they expect to happen.

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[beachbum]

I might add my two cents to the thread.
1. Mexican trucks will cross into the U.S to deliver their load and Two can pick a load up to take back to Mexico. Therefore, trucks that haul loads to the border cities will now be on Mexican trucks. Still they will not be able to haul all the loads.

2. OOIDA and the Unions are against the plan, which is no surprise since they have been putting out false information from day one and some here have bought into the lies. The main lie is the equipment that will come up above the 25 mile border area. The line haul trucks are mostly newer vehicles.

3. Mexico has no HOS, well its their country and if the drivers in Mexico drive with no HOS more power to them. There is a majority of drivers in this country who want no HOS.

Will Mexican trucking companies come here and do expediting, well if they do the see number 1. They will not be allowed to run point A to B within the United States.

 

[mcavoy33]

Another thing, if Mexican trucks start picking up and delivering in the US, there costs are going to rise significantly and they ain't going to be able to run at the same low rates as they are now. When their trucks break down in the US, they'll have to pay higher american rates, when they run out of groceries, they'll have to buy higher american rates. When they run out of fuel, they'll have to buy more expensive American fuel.

They'll basically start charging more realistic rates if they start running here in the long run imo. Sure they'll drive the wage rate down but the truck rate will increase over time on their end.

 

[turritrans]

So in other words these rules are a lot like the laws written for Canadian carriers.

Only concern I have is being these Mexican carriers can only take freight back into Mexico, how will the affect expedite team service to Laredo and El Paso? Granted everything over say 550-600 miles should be on a team if it's a regulated truck. But... I would think a majority of the team loads do goto Texas, this may really affect expeditors more then some poeple think. Basically smart shippers and brokers will be giving that business to Mexican carriers that are now being hauled on domestic expedite companies because they will get better rates and make higher profit margins. If the Texas team lanes are taken over by cheaper Mexican carriers this may affect team expedites across North America being expeditors will focus their attention and equipment on the remaining business not going to TX which may significantly affect rates due to the laws of supply and demand. So in other words, this is unwanted competition and may affect a portion of all of our business which is already feeling the pressure of a poor economy and outsourced manufacturing to other countries.

 

[Moot]

I can tell you that the ones I met a few years back were paid better than I was and they spoke good english and drove better trucks than I see around here. .

I wanted to let this quote stand on it's own, but the system won't allow it without a few words from me. Consider these my few words. Enough said.

 

[OntarioVanMan]

Yeah and I'll bet the first OTR carriers will be American ones......like Swift and Warner.....they'll just transfer trucks to Mexico and plate them there...and hire Mexican drivers. It is what I would do...

 

[greg334]

I wanted to let this quote stand on it's own, but the system won't allow it without a few words from me. Consider these my few words. Enough said.

Well Moot I only saw what I saw.

The point is I could understand them when they spoke, not like a few who come from Eastern Europe who can barely form a sentence (no offense to the Eastern Europeans).

Outside of the container haulers (which were trash just like up here), the trucks were new or nearly new trucks, most were Freightliners with some Sterlings thrown in. I did see a few old Ford C cabs and even a couple H1000s floating around doing work and in great shape.

As for pay, a few who I talked to were getting better rates than FedEx was paying me. I had been getting a few offers around $1.25 a mile from LA to Escondido while they were getting $1.40 a mile for about the same miles.

 

[OntarioVanMan]

There is a big jump of opinion that the Mexicans will work cheaper....on some runs yes they will, just as we do....but if they are real business people/owner/operators the rates will be pretty darned close....

 

[greg334]

Well that's the problem, no one really knows and it is a bunch of opinions floating around.

Like the costs don't magically vanish because someone is operating from another country.

I spoke to one of them Canadian drivers yesterday and she said it is cheaper for her to operate here than it is over in Canada. She loves her to LA and back runs when she gets them and even considers the east coast cheaper than Canada.

The problem here is the knee jerk reaction to change and we've all gone through this before - Canada, HOS, EOBRs, crazy vans, etc. ... and this time it will be the same - the industry will survive.

 

[OntarioVanMan]

Well that's the problem, no one really knows and it is a bunch of opinions floating around.

Like the costs don't magically vanish because someone is operating from another country.

I spoke to one of them Canadian drivers yesterday and she said it is cheaper for her to operate here than it is over in Canada. She loves her to LA and back runs when she gets them and even considers the east coast cheaper than Canada.

The problem here is the knee jerk reaction to change and we've all gone through this before - Canada, HOS, EOBRs, crazy vans, etc. ... and this time it will be the same - the industry will survive.

Bet there will be more Mexicans losing jobs then US drivers...all those warehouse people in Laredo and other crossings that commute across the border to work on the US side...bet they aren't happy about this to a degree...

Yes this industry, like any industry will change and adapt....

 

[greg334]

Bet there will be more Mexicans losing jobs then US drivers...all those warehouse people in Laredo and other crossings that commute across the border to work on the US side...bet they aren't happy about this to a degree...

Yes this industry, like any industry will change and adapt....

I don't agree with the warehouse thing.

See many don't get that warehousing is used for tax purposes here and it a big money maker when things are moving. Why would say GE move all that freight to their distribution points when they can let it sit to avoid inventory tax at some of those points. The same goes for autoparts, Ford isn't going to want everything sitting up in their factories until they are actually needed, so sitting somewhere else where they can claim it isn't theirs is better for them.

I also don't think we are going to see the number of trucks here that will impact OUR work as many are in a panic. I think the impact will be the big box trucking firms with that nice shiny revolving door and that 200% turnover rate.

 

[OntarioVanMan]

If it helps American conpanies to be more competitive...that in itself will maybe offset any lost driver jobs....I mean tho car are assembled in Mexico quite a few parts are made here and in Canada...at least it is still the same continent....

I think the main concern right now is not to focus on country of origin , but continent....

 

[Moot]

Well Moot I only saw what I saw.

It was the "...and they spoke good english" part of your quote that caused me to respond.

 

[scottm4211]

It was the "...and they spoke good english" part of your quote that caused me to respond.

Git er done.