Skip to content
Search AI Powered

Latest Stories

newsworthy

Mexican truckers seen ready to roll on U.S. roadways

A Mexican transportation attorney said that a recent accord to throw open the U.S. cross-border market to Mexican truckers will result in a significant number of his country's motor carriers entering U.S. commerce.

Mexican truckers seen ready to roll on U.S. roadways

A Mexican transportation attorney said that a recent accord to throw open the U.S. cross-border market to Mexican truckers will result in a significant number of his country's motor carriers entering U.S. commerce.

The remarks, made April 4 by Carlos M. Sesma Mauleón at an industry conference in St. Louis, run counter to earlier predictions by U.S. industry observers that the March 3 agreement would not trigger an influx of Mexican truckers beyond a 25-mile border commercial zone where they are currently allowed to operate. (See "Much ado about nada?")


Sesma Mauleón, founding partner of the Mexico Citybased firm of Sesma, Sesma and McNeese, said there would be "many good operators and good drivers" who will find opportunities in the United States once the border is opened to them. "Once they have the ability to come into the U.S., they will," he told attendees at the Transportation and Logistics Council's 37th annual conference.

Sesma Mauleón said the Mexican government is "putting a lot of emphasis on convincing Mexican truckers to operate in the U.S." But he said he doubts many U.S. truckers will be interested in using the same freedoms to drive into Mexico beyond the border area. "You are crossing into another universe," he said, referring to the difficulties encountered by many foreign companies doing business in Mexico.

Phased-in program
The accord, jointly announced by President Barack Obama and Mexican President Felipe Calderón, establishes what the countries have called a "reciprocal, phased-in program" to allow U.S. and Mexican carriers to operate on both sides of the border. In return, Mexico, which two years ago slapped tariffs on 89 U.S. imports in retaliation for its carriers being denied access to U.S. markets, will reduce those tariffs by half at the time a final agreement is signed, and by the remaining half when the first Mexican carrier is granted operating authority under the program. Mexico will terminate all current tariffs once the program is "normalized."

On April 9, the Federal Motor Carrier Safety Administration (FMCSA) proposed a three-phase pilot program for Mexican truck access. The first stage, which would run three months, would begin when a Mexican trucker is issued provisional operating authority and would require each truck and driver to be inspected every time they entered U.S. commerce. The second stage would require each Mexican vehicle to be inspected with a frequency comparable to that of other Mexican trucks crossing the border. Within 18 months of the carrier's receiving its original provisional authority, the certificate would become permanent as long as the carrier has a satisfactory safety rating and has no pending enforcement actions against it.

In addition, Mexican trucks will be prohibited from hauling freight between destinations within the United States. The deal is expected to meet with opposition from some congressmen and from industry interests such as the Teamsters union and the Owner-Operator Independent Drivers Association, both of which worry about the accord's impact on U.S. drivers' jobs.

Shippers remain wary
The agreement has been greeted with a collective shrug by a number of U.S. trucking executives. They predict that the prospect of increased legal liability, combined with the cost of operating in U.S. commerce, will keep virtually all Mexican truckers out of the United States.

U.S. shippers may be reluctant to use Mexican truckers, worried that safety and fitness issues might outweigh any cost benefits of using less-expensive Mexican drivers. In addition, shippers may not want to be exposed to potential liability in the event a Mexican trucker is involved in an accident within the United States.

One top executive at a U.S. trucking company, speaking anonymously, said he's been told by his customers that "there is no way" they will use a Mexican trucker for crossborder shipments.

The Latest

More Stories

aerial photo of warehouses

Prologis names company president Letter to become new CEO

Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.

After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.

Keep ReadingShow less

Featured

AI sensors on manufacturing machine

AI firm Augury banks $75 million in fresh VC

The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.

According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.

Keep ReadingShow less
AMR robots in a warehouse

Indian AMR firm Anscer expands to U.S. with new VC funding

The Indian warehouse robotics provider Anscer has landed new funding and is expanding into the U.S. with a new regional headquarters in Austin, Texas.

Bangalore-based Anscer had recently announced new financial backing from early-stage focused venture capital firm InfoEdge Ventures.

Keep ReadingShow less
Report: 65% of consumers made holiday returns this year

Report: 65% of consumers made holiday returns this year

Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.

The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.

Keep ReadingShow less

Automation delivers results for high-end designer

When you get the chance to automate your distribution center, take it.

That's exactly what leaders at interior design house Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.

Keep ReadingShow less