The Source for Trucking News, Opinions and Trucking Jobs | I May Have Overreacted

Maybe I’m just paranoid and overreacted. My Bad News post bashed Mexican drivers being used in the US by US and Mexican companies. Maybe it will be good for everyone… if CFI isn’t concerned, why should it be a problem for me?

CFI Not Concerned

“As long as we’re financially stable and are able to leverage the assets necessary to compete, why worry?”

Assets, like drivers pay?

How about this -

Although Mexican carriers do have an competitive edge in lower wages, they face many hurdles when competing directly with U.S. carriers, namely higher fuel prices, “astronomical” interest rates that drive up equipment costs, and the sheer number of U.S. carriers, according to Schmidt.

Everyone has to deal with higher fuel prices. Why would that be a disadvantage to Mexican companies. They are going to set their rates for freight going into the US enough to cover any fuel or insurance costs, just like they set their rates to make money inside Mexico.

Although Mexican fleets won’t face the same challenges crossing the U.S. border, they will have plenty of their own. This levels the playing field, Schmidt said.

Like what? Even if it levels the playing field for equipment and fuel. There’s that driver pay issue.

“I don’t see a flood of Mexican competition coming— I see more of a trickle that may eventually become a steady stream because of the application, insurance constraints and the cost of capital in Mexico,” Schmidt said.

It’s a slow death instead of a quick one.

Then another article Mexican Trucking to Make Ripples, Not Waves in Texas
kind of says the same things.

This article makes the argument that the hassles along the border aren’t going to be worth the time and effort for Mexican companies to deal with.

Mexican long-haul carriers seeking to cross the border directly are expected to face a customs nightmare, a factor that would negate any efficiencies gained, officials say.

If you are a long-hauler, waiting in customs for two to three hours and facing immigration restrictions doesn’t make your operation cost-effective,”

Duh!!! But that doesn’t stop the flow of trucks between Canada and the US. There are often two or three hour or more lines going into Canada. And if your paperwork isn’t right, you will be there much longer waiting for brokers and Customs. Get picked for an Immigration check and wait for the computer to come back and say you’re okay to go into Canada. I’ve had my truck searched. Trailer and tractor, including my bunk area. And that’s just going into Canada. Wait till you want to come back into the US.

Wait in line to get up to the Customs agent. He checks your paperwork. If it’s right, you then wait in line to get your truck X-rayed. You drive your entire truck and trailer through an X-ray machine very slow. I’ve had my truck and trailer searched by hand and dog.

All that waiting time in line, we get paid by the mile. Any inefficiencies at the border are not the companies concern or expense. Even for company drivers, they get paid by the mile. Waiting in line is unpaid.

It “doesn’t make your operation cost-effective” line is crap because the drivers time is free for most companies.

Mexican carriers that consider long-haul routes across the border will be much more likely to be held up by inspections for several hours, as well as be delayed because of lack of familiarity with the regulations or the roads than their more-experienced short-haul counterparts, Gonzales said. “They know the system and how to get to the bays and the roads.”

That’s crap for the same reason. And it won’t take long for a long-haul driver to get to know the routine.

In Texas, Gonzales does not anticipate the Mexican truckers will have a severe impact on American jobs either— a concern that the International Brotherhood of Teamsters has lobbied for. Mexican carriers are likely to charge rates that are similar to American carriers simply because they could enjoy the higher rates, he said. “If I’m a Mexican citizen and I could work [drive] for the U.S., my worth just increased two-fold. They are going to go with the market rate.”

That’s crap too. (Am I overusing that phrase?) Why would a Mexican driver not be allowed to drive in the US? I don’t see how someone’s worth would be two-fold because they can cross the border. My worth isn’t increased two-fold because I can go into Canada. Just because your worth increased, doesn’t mean your pay is going to be increased. And “going with the market rate”, the “market rate” is the lowest bid a broker or company can get away with.

The American Trucking Associations (ATA) told Fleet Owner in an earlier interview that that there wouldn’t be any stiff competition between Mexican and American carriers because they are only permitted to handle international— not domestic freight. Additionally, ATA cites over 500,000 trucking companies in the United States compared to 7,800 in Mexico.

The ATA is such a sham. I really don’t think there are 500,000 long haul, interstate trucking companies. Sounds like that includes local trucking companies too. I’d like to see how they came up with that number. Anyway, the 7, 800 Mexican companies are only competing with the freight coming and going to Mexico and the border cities. Those numbers really seem like apples and oranges. What’s that statement supposed to imply? That because we have so many companies, Mexico trucking can’t hurt us? Ask the construction and the landscaping employees along the border if they were hurt by “competition”.

Besides, OOIDA says that there is nothing to stop Mexican trucking companies from handling domestic freight because there’s no one to enforce those laws.

Okay, I’ve changed my mind. I was going to capitulate and say maybe I overreacted. But these two articles sound more like propaganda to offset the fear of US drivers losing their jobs.

I stand by my paranoia. If a State, Federal & International Affairs Director in Laredo, large trucking companies and the ATA are for something, that’s a huge red flag and the rest of us need to be looking for cover.