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MEXICANS' TRUCKS * USA - Carriers operating in the United States: Advantages & Ddisadvantages
The Low-Cost Producer: Time and Distance Is Money
(Photo from mexicotrucker: A junk Mexican truck? I don't think so)
Washington,DC,USA - Congress & Laws -November 27, 2009: ... For an independent Mexican carrier operating in the United States, its significant cost advantage is limited to its lower driver costs. Its main disadvantages are the aforementioned probable lack of a back-haul, higher insurance rates, increased inspection costs, higher stateregistration fees, and more expensive financing of its equipment... The Wage Differential Estimates of the wage differential vary substantially for a federally licensed Mexican truck driver engaged in international carriage of cargo to the United States versus the cost of a U.S. driver, but they generally range from one third to one half the cost of the U.S. driver... Using the 2007 Bureau of Labor Statistics figure for the median hourly truck driver wage of $17.41, roughly three times the U.S. minimum wage, and the estimates that Mexican drivers would cost one third to one half of a U.S. driver, the cost savings for using a Mexican driver for long-haul carriage into the U.S. would range from $7.63 to $10.17 per hour... Estimates of the differential on an earnings-per-mile basis pegged Mexican driver earnings in one case at 13 cents per mile versus 31 to 40 cents for a U.S. driver and in another case 16 cents per mile versus 32 cents per mile... With overall truck operating expenses reportedly ranging from $1.10 to $1.70 per mile, the majority of the labor cost advantage is quickly lost on any job without a revenue earning backhaul... The labor cost benefit would probably be lost within the first third of a return run to the border without a back-haul load... Most observers believe that the border states will be the main zone of competition, with only the Mexican companies with connections for back-haul loads operating beyond the border states with any regularity...
(Photo: Another modern mexican trucks)
One way Mexican trucking firms could avoid hauling an empty trailer all the way back to Mexico would be to use the tractor to pick up and make a domestic U.S. delivery on the way back to Mexico. In the language of the trucking industry, such domestic movements are referred to as cabotage. NAFTA does not allow Mexican trucks to engage in domestic trucking in the United States or vice versa. U.S. customs has made an exception for Canadian vehicles, which may also be allowed for Mexican carriers... Trucking unions and truck owner-operators are concerned that once Mexican trucks are commonly operating deep within the United States, Mexican carriers will be tempted to routinely engage in illegal cabotage in general and, in doing so, will take jobs away from U.S. drivers and businesses... Another concern is that Mexican trucking firms will lease their trucks and drivers to U.S. partners or parent companies who might arrange for a work visa for the leased driver and then provide both international trucking services as well as cabotage within the United States...
Labels: mexicans' trucks debate
posted by Unknown @ 9:46 AM
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