Posts Tagged ‘Mexico’

Tariffs End as First Mexican Carrier Plans to Enter U.S. this Week

Wednesday, October 19th, 2011

Last week served as a big step in the Mexico/U.S. Cross-border Agreement as Transportes Olympic became the first Mexican carrier granted access into the U.S., ending Mexican tariffs placed on U.S. goods.

Mexico/U.S.

Apodaca-based Transportes Olympia, the first Mexican trucking company to be granted operating authority in 2007 until the pilot program was stopped two years later, would ship steel and building products about once a week into the U.S., according to chron.com.

Guillermo Pérez, Transportes Olympic manager, responded to the decision by stating, “We’re really, really happy with this news.  We can actually give door-to-door service to our clients” (http://www.fronterasdesk.org/news/2011/oct/18/nafta-free-trade-border-business-manufacture/).  Pérez is referring to the ability of Mexican trucks to conduct long-haul runs as opposed to the previous agreement where they had to hand off their shipments to a U.S. carrier after crossing the border.

According to chron.com, the Mexican trucking company is expected to make its first shipment this week, operating with two trucks and one driver.

With the U.S. granting a Mexican carrier operating authority, Mexico has removed the remaining tariffs that they had placed on 99% of American goods in retaliation of the U.S. ending the pilot program in 2009.

Although there have been many arguments that the cross-border agreement would lead American truckers to lose their jobs and cost U.S. taxpayers between $500,000 to $700,000 install mandatory EOBRs (electronic onboard recording devices) in Mexican trucks, experts believe there to be many benefits in the program.

In a study conducted earlier this year by Texas A&M University, an estimated 12,000 U.S. jobs are said to be resurrected due to abolishing the tariffs.   Along with job creation, the program is said to “reduce shipping costs for consumers and would improve border and freight security” (http://www.chron.com/business/article/Mexico-ends-tariffs-as-cross-border-trucking-2219646.php).

Experts also believe that by allowing long-haul trucking, it would make it harder to smuggle drugs into the country, which would be easier to do with a truck that has been parked for a long period of time.

Officials also emphasize that each Mexican carrier granted access would have underwent driver background checks, pass U.S. emissions standards, safety audits, along with several other inspections.

Road Scholar Transport incorporates EOBRs and other safety technology on our trucks, conducts pre- and post-trip inspections on every truck, as well as conducts mandatory drug and background checks on every driver to ensure only the safest drivers and equipment on the road.  Visit www.roadscholar.com to learn more about Road Scholar’s technology and to get your freight onboard a safe carrier today.

What do you thing of the Mexican/U.S. Cross-border Agreement?  Do you think it is beneficial or does more harm?  List your comments below.

news on the trucking industry

OOIDA Becomes Enraged at Second Cross-Border Agreement Signing Allowing Mexican Carriers to Begin Application Process

Thursday, July 7th, 2011

Yesterday, Ray LaHood, U.S. Transportation Secretary, signed an agreement that would abolish $2.4 billion worth the retaliatory tariffs Mexico placed on U.S. goods back in 2009, believing that doing so would lead to job creation.

U.S./Mexico

According to thetrucker.com, LaHood signed the final agreement with Mexico’s Arturo Pèrez-Jàcome, Secretaría de Comunicaciones y Transportes Dionisio, stating that 50% of the retaliatory tariffs would be lifted within the next 10 days, removing the tariffs completely once the U.S. grants a Mexican carrier operating authority, which is expected to happen within the next upcoming months.

Mexican carriers are now permitted to register for the pilot program at any time, expecting the first carriers to start transporting goods in the U.S. by the end of August, the site notes.

But in order to be granted operating authority, Mexican carriers must meet certain requirements including:  “trucks will be required to comply with all Federal Motor Vehicle Safety Standards, they must have electronic monitoring systems to track Hours of Service compliance,” drivers must undergo drug testing and have their driving record carefully reviewed by the U.S. DOT, and knowledge and understanding of the “English language and U.S. traffic signs” (http://www.thetrucker.com/News/Stories/2011/7/6/Cross-bordertruckpactsignedtariffstoendMexicancarrierscanapplynow.aspx).

According to LaHood, “The agreements signed are a win for roadway safety and they are a win for trade.  By opening the door to long-haul trucking between the United States and Mexico, America’s third-largest trading partner, we will create jobs and opportunities for our people and support economic development in both nations,” thetrucker.com posted.

Although it is said that the cross-borders agreement will create more job opportunities, OOIDA believes otherwise.  In fact, the association expressed that the program would instead take away from U.S. jobs, especially those truckers working for small businesses.

OOIDA, who was strongly against the agreement in the first place stating that “Mexico has failed to institute regulations and enforcement programs that are even remotely similar to those in the United States and because there would be no relevant corresponding reciprocity for U.S. truckers,” is now irate with the fact that LaHood signed the agreement “without providing the public or Congress with the final details of the agreement,” believing him to be “sneaking down there to sign it” (http://www.thetrucker.com/News/Stories/2011/7/6/OOIDAUStruckersfumingoveragreementwithMexico.aspx).

OOIDA also fought the fact that U.S. taxpayers are spending their hard-earned money to provide EOBRS (electronic onboard recording devices) for these Mexican carriers operating in our country.

Do you support LaHood’s decision to sign the agreement or are you in favor of the OOIDA’s standpoint?  Post your comments below.

news on the trucking industry

Produce Called New MVP for Thieves as Police Continue to Track Down Fraudulent Trucking Company

Friday, April 15th, 2011

Tomatoes and other produce are being dubbed the new MVP (Most Valuable Product) among thieves after nearly $300,000 worth the food products were stolen last month by a group of thieves who created a fraudulent trucking company.

tomatoes

E&A Transport Express, a false Miami-based trucking company, is said to have stolen eight tractor trailers worth the food products which include six loads of tomatoes, one load of cucumbers, and one load of frozen meat, according to thestar.com.

Why thieves would target tomatoes instead of a trailer full of electronics may pose as a question to many.  The answer would have to do with freezing temperatures in Mexico that ruined and damaged crops, raising the price of produce, the site notes.

One 40,000 pound load of tomatoes that was stolen, for instance, cost West Coast Tomato $42,000 (http://www.thestar.com/news/world/article/975215–vegetable-bandits-strike-as-food-prices-soar).

The thieves, who are still not caught, realized the impact that freezing weather conditions would play on produce sales, which is why, thestar.com explains, E&A Transport Express quickly registered with the Federal Motor Carrier Safety Administration and began to search out brokers listing produce loads.

One of these brokers was Allen Lund, who verified the company’s registration with the FMCSA before giving the thieves loads.  But they were not the only ones conned.  Three other brokers were wrapped up in E&A Transport Express’s scheme as well.

tracking

By taking loads that were given a few days for delivery due to distance, the company had enough time to pull of the theft before the goods were reported missing/undelivered.  On the other hand, if the shipper had transported their cargo with Road Scholar Transport, they would been able to track their shipment live as well as have their freight constantly monitored by Road Scholar employees so that if a driver goes off route, the driver and truck are immediately contacted and checked of any problems.

Unfortunately, the inability to track your freight is the case for many produce companies who go through brokers to ship their freight.

More and more instances of fraudulent companies using online methods to develop and steal freight are erupting, posing a concern for those shippers using brokers, since they do not know who exactly is handling their freight or if the company now trusted with their goods is legit.

Having your products stolen is a concern for all companies but especially food, beverage, and pharmaceutical industries whose products, when in the wrong hands, could become contaminated and result in large effects on the health of the general public.

This can be prevented by choosing a reputable company who has been in business for years and is well-versed in cargo security, such as Road Scholar Transport.

Road Scholar has joined CargoNet, a group dedicated to theft prevention and recovery, and is continuously pushing the performance envelope with new products and technologies with an emphasis on brand protection and on time performances.

Owner Jim Barrett has been asked (and accepted) to do several radio interviews and presentations on cargo security.  Some of these include the radio show “Tough Talk” with Joe Peters, which you can hear at http://www.roadscholar.com/webinars/toughtalk2.html and presentations with Walt Beadling, President of the Cargo Security Alliance, who was recently featured on Fox News as an expert in the cargo security scare.

You can view a pdf explaining all of our features/services at http://www.roadscholar.com/cms/uploads/files/rs-security.pdf.

Don’t let your products be the target of a theft scheme.  Go to www.roadscholar.com to learn what Road Scholar can do for you.

How much do you value cargo security?

Flight 93

FMCSA Justifies Why They Must Pay for EOBRs on Mexican Trucks

Wednesday, March 16th, 2011

Much dispute has erupted over the Federal Motor Carrier Safety Administration (FMCSA)’s decision to pay for electronic on-board recording devices (EOBRs) on Mexican trucks traveling into and out of the United States as part of the Mexican Cross-Border Agreement.

The FMCSA would be spending anywhere from a half of million dollars to $700,000 to install mandatory EOBRs in Mexican trucks.  Carriers are expressing disapproval with the agency using taxpayers’ money to do so, some saying that “it is the height of stupidity for our government to subsidize foreign companies” (http://www.cpatrucking.com/eobr-alliance-decries-unfairness-of-dots-plan-to-pay-for-eobrs-on-mexican-trucks.html).

Anne Ferro

Anne Ferro

But Anne Ferro, Administrator for the FMCSA, spoke up to defend the agency’s decision on funding the devices.  EOBRs would not only ensure the monitoring of Mexican trucks, but according to Ferro, there is a larger reason why the agency has to purchase them and it has to do with the North American Free Trade Agreement.

Under the agreement, Ferro explains, the U.S. is only able to mandate Mexican trucks to do the same requirements as U.S. trucks, truckinginfo.com notes.  Since the U.S. currently does not require the installation of EOBRs for all U.S. carriers, the FMCSA cannot mandate Mexican carriers to do so either.  Therefore, in order to monitor Mexican trucks to ensure that they comply to current rules and regulations, such as hours of service and cabotage rules, which “restrict freight hauling between points in the U.S.,” the FMCSA has proposed to fund the installation temporarily until the pilot program ends, which is an estimated three years from now or until the U.S. mandates EOBRs on its trucks, the site notes.

Taxpayers may be questioning why we let Mexican truckers in if it is going to cost us to monitor them.  This is because the FMCSA believes that the agreement with Mexico will save us billions of dollars in the end, one of the reasons why the cross-border agreement came about in the first place.

The proposal came after disputes resulting from the termination of the pilot program in 2009, which led to Mexico retaliating through the installation of tariffs on American goods, resulting in over $2 billion a year in tariff costs.

As Ferro notes, the border agreement was an attempt to get Mexico to withdraw the tariffs, agreeing to “reduce its tariffs by half when the final agreement is signed” and suspend the rest “when the first Mexican carrier is granted operating authority” (http://www.truckinginfo.com/news/news-detail.asp?news_id=73234).

There are three phrases that the agreement must go through.  First is a pre-operations vetting process which would place a set limit on the number of Mexican carriers allowed to partake in the cross-border agreement during the first stage of the program.  These carriers have to undergo inspections to ensure that their trucks comply with U.S. safety requirements as well as be insured by a company in the U.S. while drivers have to be knowledgeable of U.S. traffic laws and be able to speak English, truckinginfo.com states.

The next step deals with the inspection of each Mexican truck every time it crosses the border as well as “clear a Compliance Review and earn a Satisfactory Safety Rating in order to get full operating authority,” the site notes.

Finally, truckerinfo.com states that the public will have a chance to comment on the program, as well as “a web site at the FMCSA home page, creation of an advisory committee and periodic reports to Congress.”

As of right now, the Mexican cross-border project is just a proposal and the public will be given a chance to comment within the upcoming weeks in which the U.S. will again meet with Mexico to discuss.

With Road Scholar Transport, you can be assured that your LTL and TL freight are the hands of a certified, safe carrier.  With satellite tracking down to the street-level, you will always know where your freight is and who has it.

On a scale of 1 to 5, how much do you value knowing where your freight is on demand?

tracking

Road Scholar satellite tracking

Mexican Cross-Border Program Could Be Up and Running Within Months

Tuesday, January 11th, 2011

According to U.S. Trade Representative Ron Kirk, the proposed program which would remove barriers on U.S. exports Mexico/United Statesby allowing Mexican carriers access to U.S. roadways could be in effect within four to six months.

In a speech yesterday, Kirk noted that “the U.S. would like to sit down and begin negotiations with Mexico in the next week.” (http://online.wsj.com/article/SB10001424052748703779704576074283804970202.html).

The proposal came after disputes resulting from the termination of the pilot program in 2009, which led to Mexico retaliating through the installation of tariffs on American goods.

The “rotating list of 99 U.S. products in 2009” include “pork, ketchup, and wine” (all goods in which Road Scholar Transport has the capability to safely transport), resulting in over $2 billion a year in tariff costs (http://www.businessweek.com/ap/financialnews/D9KLQBMO1.htm)

According to businessweek.com, Mexico has agreed to “stop rotating the products being taxed” but refuse to remove the tariffs all together.

Cross-border Proposal Spurs Dispute Over Drivers’ Jobs

Friday, January 7th, 2011

Yesterday the Obama Administration set forth a new proposal aimed at solving the dispute America and Mexico have US/Mexican flagsbeen facing for almost two years.

In March of 2009, the pilot program, which granted select Mexican carriers access into the United States, was stopped, leading to the Mexican government’s retaliation through the use of tariffs on 99% of American goods.

In an attempt to remove the barriers on U.S. exports, the new proposal seeks to allow Mexican carriers access to U.S. roadways with a few conditions.

According to truckersnews.com, the proposal would establish a “long haul cross-border Mexican trucking program” that abides to the North American Free Trade Agreement but also satisfies U.S. safety requirements.

Before a Mexican carrier can gain access, they need to undergo driver background checks, pass U.S. emissions standards, safety audits, along with several other inspections outlined at http://www.ccjdigital.com/files/2011/01/Concept-Trucks-English.pdf.

The number of Mexican trucks that are granted access into the U.S. will be determined after negotiation but many U.S. truck drivers suggest granting zero access at all (http://www.google.com/hostednews/ap/article/ALeqM5iIi1w54JX4xOu8j1F2F5RFOYGFag?docId=0782dcf8c13f49cbbbb68707136c9482).

One such group critical about the proposal is the Owner-Operator Independent Drivers Association.  Their concern rests in the current driver shortage facing the U.S. and believe that this proposal would “only rob U.S. drivers of their jobs,” stating that “The onus is upon Mexico to raise their regulatory standards, not on the U.S. to lower ours to accommodate their trucking industry.” (http://www.truckersnews.com/cross-border-truck-plan-unveiled/).

Once an upcoming formal proposal is submitted, the public will have a chance to comment.

Are you worried about your job?  You don’t have to be.  Apply today at http://www.roadscholar.com/employment.php and see all that Road Scholar Transport has to offer.

Daimler Trucks Predicts 50 Percent Truck Market Increase

Tuesday, September 21st, 2010

As the trucking industry struggles to deal with capacity issues, Daimler Trucks presents the notion that by 2015, the world will see a 50 percent increase in the truck market, according to an article on truckinginfo.com.

The news came the day before this year’s Hannover truck show, which took place in Germany.  According to Daimler Trucks, the BRIC nations (Brazil, Russia, India and China) as well as “Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey and Vietnam,” otherwise known as the Next 11, are predicted to have the largest increase in this market (http://www.truckinginfo.com/news/news-detail.asp?news_id=71710).  How big of an increase are we talking about?  Take it this way, Indonesia’s market alone is estimated to increase by 87 percent during this year, the site claims.

According to Bloomberg Businessweek, trucking companies ceased buying trucks due to the recession, but economic recovery will lead to more sales, projected at three million by the year 2015.

Daimler is the largest truckmaker in Europe and plans on expanding their factories to growing markets (http://news.businessweek.com/article.asp?documentKey=1376-L91UAB0YHQ0X01-54PJ8ME6CI3VVKD9881NNVANI5).

Road Scholar Transport

Road Scholar Transport