The other day I wrote an article about my concerns on the opening of US borders to Mexican trucks. Under a one year trial, 100 specially selected Mexican trucking companies will have access to the US market. Job security, safety and cabotage have been the biggest fears of US unions and American trucking firms.
Now the Federal Motor Carrier Safety Administration is proposing to monitor Mexican vehicles with satellite tracking. FMCSA proposes to do this free of charge to participating trucking firms. Ostensibly the tracking devices are intended to monitor trucks for safety and cabotage compliance. The same devices are to be applied to American trucks traveling in Mexico. (FMCSA regulations for Mexican carriers can be found here.)
This at least answers my previous concerns regarding cabotage and use of Mexican trucking companies in domestic US commerce. I'm sure there will be more on this to follow because vehicle safety and jobs are not the real issue. Those can be measured and legislated. Where I see an evolutionary process requirement is in the cabotage area. We are on a slippery slope here.
If the Jones Act is intended to protect US transportation for US carriers only, then it is a concern when foreign vehicles are on US roads. Those trucks will need a back haul. I think eventually, Mexican trucks will be allowed to return goods not only to Mexico, but to destinations along the way. This makes good logistics sense, but will threaten the current state of our cabotage laws.
How well this trial period goes will go a long way toward shaping transportation policy for the next US Administration.
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Don't forget about Canadian carriers. They've got to be watching this debate closely. There are a lot of them...most are just as sophisticated as their US counterparts.
Relaxation of cabotage laws will benefit them immensely. In fact, I think Canadian equipment CAN legally do domestic US moves, it's just the Canadian driver that cannot.
It's been a few years since I've been on the carrier side, so I'm not 100% sure anymore.
I've lurked on your site for a while without posting...I like your work. I'm a Canuck that's been working and living in the US for 3 years.
Posted by: Sasha Green | October 02, 2007 at 10:27 AM