Posted on Oct 06, 2007 - 10:37am by Porter Corn in NAFTA, Politics
The opponents and most vocal critics of the Mexican Pilot Program continue to insist their opposition is only about safety and concern over the economic impact a few Mexican trucks will have on their ability to earn a decent living. Facts and figures would suggest otherwise.
Thursday, October 4, a small group of Mexican truckers gathered at the Matamoros-Brownsville International bridge to protest Mexico’s participation in the Demonstration Program
Parked along the curbs near the entrance to the Veterans International Bridge, the drivers demanded equal treatment for Mexican and American truckers.
“American truckers get preferential treatment in Mexico, while Mexican truckers on the U.S. side of the border get tickets for no reason at all, said CANACAR. representative Alfredo Lartigue.
CANACAR membership consists of 35 Mexican carriers and about 150 Mexican owner operators.
“Only three or four American carriers have the equivalent of all the Mexican trucking units,” Lartigue said. “Just considering the number of units of both countries, we are not in equal conditions to compete against each other.”
Senor Lartigue has a point here, and the numbers seem to make my point that the debate has nothing to do with safety nor economic concerns.
In 2005, there were only 168,225 two- and three-axle tractors in all of Mexico, according to the national agency that supervises Mexican trucking, the Direccion General de Autotransporte Federal. The 269,000 valid CDLs in Mexico include drivers of all commercial vehicles, including buses, according to the U.S. Department of Transportation.
Imagine that! 168,225 two and three axle tractors in the entire Republic of Mexico! Compared to more than 3,000,000 million registered in the United States. Mexican truckers holding 269,000 valid licencia federal de Conductor compared to 11,000,000 registered CDL holder in the United States according to CDLIS. That seems to be a very unlevel playing field with the odds overwhelmingly in favor of the United States, wouldn’t you say?
And the big bad Teamsters and others are worried about losing jobs? When the companies who have applied for authority to operate in the United States number less than 50 and with less than 200 trucks which have been cleared to participate? Something smells here.
I had the opportunity yesterday to sit down with Jerry Goana, President of Transportation for Ragar International Ltd. the company we are leased to and discuss this issue. Jerry has been in this business for more than 30 years. Ragar Ltd is a family owned international forwarding and transportation company.
Jerry confirmed some things I already knew and had previously reported here and enlightened me on other things I was uncertain of. As I do, he scoffs at the idea that this Pilot Program will encroach on owner operators income or ability to earn a living.
We discussed rates in Mexico and he confirmed what I already knew but put hard numbers on the table. For instance, the rate of haul between Nuevo Laredo and Monterrey, a distance of 145 miles, is standard at $300.00 For those of you who are mathematically challenged, that is more than $2.00 per mile. Every load, every day! Nuevo Laredo to Mexico City? That is 720 miles with a rate of $1200-1500.00 every load, every day! Again $1.80 to more than $2.00 per mile. So much for the idea of cheap rates in Mexico. And this man should know. Ragar has a Mexican operation on the other side of the border.
So if you listen to the opposition, tens of thousands of Mexican trucks are preparing to “invade” the United States! How ridiculous. They are going to abandon the transportation needs of Mexico so they can come here and haul $.85 cpm freight? I don’t think so people.
As Jerry pointed out what I have opined in the past. Mexican trucks will come here servicing the needs of their customers in Mexico. That is their purpose. Transportes Olympic has already proved this.
But you say, that is a load an American trucker could haul? True, maybe, but how can you lose something you never had?
Last year, 3.5 million freight crossings were made in Texas alone. And yearly, that number increases 2 to 4%. More than enough to offset the few Mexican carriers who will be operating here.
As I was leaving the office and returning to the house yesterday, I passed Melton Truck Lines terminal in Laredo. There were no less than 9 loads of structural steel, most probably from the same customer in Monterrey that Transportes Olympic serves. Gives on pause to think.
So is it truly about safety or is it about something more deep seated and hateful? You be the judge.
U.S. Trucker Delivers in Mexico
RSS feed for comments on this post | Trackback URI
I think this is more about what will happen IN THE FUTURE. It’s not really about what/how many RIGHT NOW. I think most people are concerned about opening this door….because anyone who believes they can predict what this means for the industry in the future, is simply fooling themselves.
You know Thomas, we had the same arguments in 1982 when Reagan imposed the moratorium on ALL foreign motor carriers and then with the stroke of the same pen, lifted it for the Canadians. The opponents were predicting doom and gloom for the future if that was allowed to continue. Here we are in “the future” and nothing that was predicted then has occurred.
But something else for everyone to consider. We will have Mexican carriers on our highways, whether or not the bill to end the funding passes intact or not. It is the right thing to do, keeping our word as a country, something we seem to have trouble doing over the years.
But shut the program down. You will still have Mexican carriers operating legally all over the United States as they have for the past 35 or 40 years. Mexican carriers servicing Canadian customers will continue to have open access to America’s highway to transit between Mexico and Canada and return, as they always have had the ability to do. And most important, President Bush can life the discriminatory moritorium against the Mexican carriers put in place in 1982, with the stroke of a pen, with or without Congressional approval. And if that happens, any truck from Mexico would be able enter and operate in the U.S. after going through the normal application process.
It might be better to leave well enough alone and let the Pilot Program run itself out and see what happens. A month into the program, no reports of carnage on the highways or assaults on the drivers and equipment.
And the folks down here along the border don’t thing we’ll see an influx of trucks for at least 15 or 20 years, if then.
There is plenty of freight for all of us. So much in fact, that I have found it necessary to “disappear” for a few days to get some rest.
I THINK WE AS AMERICAN TRUCKERS HAVE ALOT MORE TO WORRY ABOUT THAN A FEW MEXICAN TRUCKING COMPANIES TAKEING OVER OUR CHEAP FRIEGHT. HELL THEY MIGHT OUGHT TO START WORRY ABOUT AMERICAN TRUCKERS DEFECTING TO THIER COUNTRY!!!
LETS SEE: DEFECT DO TO GOVERNMENT PERSACUTION.
DENOUES AMERICAN CITAZINESHIP.
LIVE ON A BEACH SOMEWHERE.
MAKE A GOOD LIVING.
GREAT FOOD, REAL TAUQILA AND OTHER PLEASURES.
DAM WHERE DO I SIGN UP!!!!!!!!!!!!!!!!!
I WONDER HOW MUCH IT WOULD COST TO OPERATE MY 18 WHEELER DOWN THERE…….?……..WHO CARES IF IT DONT WORKOUT, IVE GOT A FEW GOOD YEARS LEFT IN ME, I’LL JUST BECOME A JIGALO…..ON A BEACH SOMEWHERE….HEY I MIGHT WRITE A SONG ABOUT THAT SOMEDAY……CHEERS
so your saying that the substandard trucks an trailers that cause the stopping of the cross boarder program will never find its way back into the program.Mexico has had a past with the US as bad as the Us is getting in the rest of the world.