Mexican trucks

[FJ and G]

It seems that a decision to let trucks into the US will be made by Congress sometime this summer. Do you think this will have a negative impact on "NAFTA rail?"

Dave Vergun

[Modelcar]

....The news yesterday seemed to indicate the decision has already been approved to allow the Mexican trucks in this country to run freely wherever business takes them...If in fact this is true, I for one can't understand how we are allowing this to happen. Anyone who has seen Mexican equipment understands these vehicles are not up to the standards we hold our trucking system to in this country. I'm of the opinion we don't need these vehicles running on our already crowded interstates to add to the danger factor...How do we voice our opinions to get it stopped.

[Anonymous]

Wow, that sounds like a pretty big deal.

You would think that these trucks would have to adhere to US standards if they want to travel on US highways, otherwise those mexican truckers would be at a huge advantage not having to keep up mechanically.

Interesting to see how this will play out, sounds like a big safety issue.

[edblysard]

They do have to adhere to US standards, along with carrying US insurance, which is about three to four times as expensive as in Mexico.
Currently, Mexican trucks are allowed to travel 20 miles into Texas, then they must transload into an American carrier, truck or rail.

With the additional insurance cost, and having to bring their trucks up to US standards, along with task forces, like the HPDs truck inspection task force, dont look for a big flood of Mexican trucks anytime soon.
By the way, any Mexican truck entering Texas is required to display a EPA certificate, similar to a state inspection sticker, showing they meet EPA emmision standards.

Ed

[Modelcar]

...I'm sure glad to hear of the standards they must step up to....and I agree there won't be a line of them with these standards waiting to jump in to our side of the line and start doing business....I was afraid it was wide open for them....That's the part that's not made clear on the info that's out there yet...Sure hope it is as strict as ED believes it is.

[jsanchez]

I think long term is where you are going to see the most effects, you are going to see many USA trucking firms start Mexican subsidiaries or buy into existing Mexican firms and replace many of the runs now done by American drivers with Mexican drivers to save money. Why pay an American ten to 20 an hour when you can hire a mexican driver for far less. Truck driving is one of the last places a non a college educated person can make decent money. I think the trucking industry and the current administration are working to end this. I'm a Republican but , I believe in calling it as it is, I know Bush has been really pushing for allowing Mexican trucks in the USA, it has actually been a high priority, the sad thing is John Kerry would probably do the same exact thing if he was in charge. Hopefully the higher US standard will be upheld, but I do have my doubts. I also expect the lower cost mexican trucks to eat eat into rail market share as they will be able to undecut some rail rates.

QUOTE: Originally posted by Modelcar

...I'm sure glad to hear of the standards they must step up to....and I agree there won't be a line of them with these standards waiting to jump in to our side of the line and start doing business....I was afraid it was wide open for them....That's the part that's not made clear on the info that's out there yet...Sure hope it is as strict as ED believes it is.

[wabash1]

Ed

Not going to start a fight here but when was this changed? When nafta first passed the mexican trucks rolled in. they had to be up to standards of their countries saftey standards. the junk that rolled thru here was inhumaine. Most generally the sheriffs department would arrest 5-6 guys traveling in 1 truck cause they had no money to pay the bill at the truckstop restaurant. This flooded the jail and the trucking company would just send more guys to fini***he run. This was an agrement that americans had a chance to voice thier opinion to the powers to be. but who listened? when i drove into canada we had no special things to do to our trucks. paper work had to be up to snuf and things you took into the country with you was limited. (personal items) But most generally the saftey standards of canada and the usa are the same.

Insurance for mexican drivers are at mexican value not usa value. ( it all goes back to where the truck is based at.) I cant say about emmisions standards as this is a changing thing I know if you have black smoke out of your stack for so many feet or for more than 1 minute of accelerating your truck was not allowed in california. ( that was then) .

[FJ and G]

James,

I forgot to mention that point about the lower salaries for Mexican truck drivers. That would be another blow to rail; UNLESS they hired lower salaried Mexican engineers and conductors.

This development does not bode well for railroads, not to mention our already overcrowded highways.

(In case you might be wondering I have nothing against Mexicans, and hope that some of the other aspects of NAFTA might boost the Mexican economy. The international border is more than a wall or fence, on one side the grass is green and there are swimming pools. On the other, shacks and brown dust)

[Anonymous]

QUOTE: Originally posted by edblysard
They do have to adhere to US standards, along with carrying US insurance, which is about three to four times as expensive as in Mexico.
Currently, Mexican trucks are allowed to travel 20 miles into Texas, then they must transload into an American carrier, truck or rail.

With the additional insurance cost, and having to bring their trucks up to US standards, along with task forces, like the HPDs truck inspection task force, dont look for a big flood of Mexican trucks anytime soon.
By the way, any Mexican truck entering Texas is required to display a EPA certificate, similar to a state inspection sticker, showing they meet EPA emmision standards.

Ed

Another Texan joins in.........

One of the big international issues pushing the truck thing, to which the President has been very close since he was Governor here and had to deal with it on a day-to-day basis, is that Mexico expected equitable treatment under NAFTA, and yet they see Canadian trucks crossing their border daily at El Paso, Zaragosa, Presidio, Del Rio, Laredo, McAllen, Progreso and Brownsville, heading right on into the Mexican interior, with all 3 flags on the trailers, and they see US trucks doing the same thing, while theirs get no further than 20 miles into the US before an expensive transload is required, regardless of the condition of their trucks. They look at this situation and correctly conclude that the treatment is not equitable and that their trucking companies are getting screwed, to the detriment of their economy. Look at it from their perspective--if it were Canada doing that to our trucks, the ATA and Teamsters would be all buddied up like they loved each other, demanding a national boycott of Labatt, Molson and Moosehead! (that'll hit 'em where it hurts, eh??).[xx(]

The trucks are closely inspected for proper safety equipment and condition at the border--it's a big deal that the highway people are very much in tune with. When we did a study on the Reynosa-McAllen gateway, that was one of the big issues, because the necessary inspections use up capacity and manpower, right along with the customs/immigration, DEA and now Homeland Security issues.

One of the big concerns along IH35 is that there are some borderline nonattainment areas, including Austin, that the additional exhaust load may push over the top on ozone and SO2, if the trucks are not burning US grade Diesel. This will cause some penalizing of the locals for the effects of through traffic and Houston's bad air that blows over at just the wrong time.

I personally am concerned that there is not really enough capacity for the trucks we have now, and this will only make it worse.

Of course, there's money to be made if a RR can intercept these trucks and get them on flatcars. That assumes, however, that they can get their trains out of the sidings and actually running, first[:D]

[Anonymous]

There are already plenty of Canadian trucks carrying goods in the U.S. I'm sure the Mexican trucks will be doing the same. Plenty of Mexican drivers already working for U.S. firms. The truck driver shortage is legend. Ther new HOS regs won't make this any better. Also, just look at the speed at which very large unionized trucking firms are falling by the wayside. With so many of the critical trucking costs such as fuel and environmental and HOS compliance up, the trucking companies MUST cut costs somewhere, or perish. Just ask the 3,000 former Consolidated Freightways employees or the 2,000 Red Star folks now on the street. The unionized lines with their higher costs are first to feel the pinch, but others will follow. Might not be such a bad thing for RRs. Problem is, there is not enough additional capacity there either...

LC

[jeffhergert]

QUOTE: Originally posted by jsanchez

I think long term is where you are going to see the most effects, you are going to see many USA trucking firms start Mexican subsidiaries or buy into existing Mexican firms and replace many of the runs now done by American drivers with Mexican drivers to save money. Why pay an American ten to 20 an hour when you can hire a mexican driver for far less. Truck driving is one of the last places a non a college educated person can make decent money. I think the trucking industry and the current administration are working to end this. I'm a Republican but , I believe in calling it as it is, I know Bush has been really pushing for allowing Mexican trucks in the USA, it has actually been a high priority, the sad thing is John Kerry would probably do the same exact thing if he was in charge. Hopefully the higher US standard will be upheld, but I do have my doubts. I also expect the lower cost mexican trucks to eat eat into rail market share as they will be able to undecut some rail rates.

QUOTE: Originally posted by Modelcar

...I'm sure glad to hear of the standards they must step up to....and I agree there won't be a line of them with these standards waiting to jump in to our side of the line and start doing business....I was afraid it was wide open for them....That's the part that's not made clear on the info that's out there yet...Sure hope it is as strict as ED believes it is.

Well said. One of the causes of the driver shortage is the level of pay. Why pay more when you can set up a foreign subsidiary paying lower wages with a large available work force more than willing to work for those lower wages.
P.S. Consolidated Freightways is gone, but Conway Express, a low cost sister company is still going strong.

[edblysard]

Been that way here, in Texas, for a while.
HPD even has a dedicated task force, driving beefed up Dodge Ram Pick Ups,
with crawlers, jacks, and all the inspection tool needed to do a really detailed inspection, and they do nothing but spot truck inspections, 24/7.

QUOTE: Originally posted by wabash1

Ed

Not going to start a fight here but when was this changed? When nafta first passed the mexican trucks rolled in. they had to be up to standards of their countries saftey standards. the junk that rolled thru here was inhumaine. Most generally the sheriffs department would arrest 5-6 guys traveling in 1 truck cause they had no money to pay the bill at the truckstop restaurant. This flooded the jail and the trucking company would just send more guys to fini***he run. This was an agrement that americans had a chance to voice thier opinion to the powers to be. but who listened? when i drove into canada we had no special things to do to our trucks. paper work had to be up to snuf and things you took into the country with you was limited. (personal items) But most generally the saftey standards of canada and the usa are the same.

Insurance for mexican drivers are at mexican value not usa value. ( it all goes back to where the truck is based at.) I cant say about emmisions standards as this is a changing thing I know if you have black smoke out of your stack for so many feet or for more than 1 minute of accelerating your truck was not allowed in california. ( that was then) .