The illegal misuse of B-1 visa drivers from Mexico and Canada is having a serious impact on the U.S. trucking industry, forcing many small operators out of business and destabilizing freight rates nationwide. This growing concern has caught the attention of American stakeholders, including the American Trucking Associations (ATA), who are calling for stricter enforcement of cabotage laws.
Gerry Reed, a former trucking company owner in South Texas (name changed for anonymity), recently shut down his business due to the increasing use of B-1 drivers operating illegally within the U.S. “There was no reason to try and keep up with the B-1 drivers’ nonsense,” Reed said. “It’s driving rates down and cutting us out.”
Under U.S. law, B-1 visa holders are only allowed to transport goods from their home country into the U.S. and return—no domestic hauling is permitted. However, many foreign drivers, particularly from Mexico, are reportedly staying in the U.S. to deliver additional domestic loads, undercutting U.S. carriers who pay higher wages and must comply with strict labor laws.
Some U.S. carriers have even exploited the loophole by hiring these drivers for domestic runs or setting up shell companies to lease trucks with both U.S. and Mexican plates. Mexican drivers with B-1 visas can make significantly more than they would in Mexico, prompting many to stay and work in the U.S. illegally. A trucking company owner in Monterrey noted that drivers can earn up to $6,000 a month in the U.S., compared to just $1,500 in Mexico.
The problem isn’t limited to Mexican drivers. Canadian B-1 visa drivers have also been implicated in illegal domestic runs, further widening the issue’s scope.
Fuel haulers and regional operators in Texas are especially feeling the pressure. “You can’t compete with B-1 drivers taking jobs for less pay,” said one owner-operator, also speaking anonymously. “I can’t afford to drop my rates that low.”
The ATA has taken action. At the Truckload Carriers Association conference in March, ATA Chief Economist Bob Costello confirmed that the misuse of B-1 visa drivers is illegal and contributing to a weakened freight market. ATA President Chris Spear also sent a letter to Transportation Secretary Sean Duffy, urging federal agencies, including Homeland Security, to enforce visa regulations and prevent international drivers from working illegally within the U.S.
Stakeholders suggest one enforcement measure could include checking visas and licenses at weigh stations, especially along busy routes like I-35. Despite high levels of law enforcement presence near the border, many say their focus has been on immigration rather than trucking compliance.
Mexican trucking officials are also concerned. The illegal hiring of B-1 visa drivers by U.S. companies not only drains the local talent pool but also disrupts Mexico’s freight industry, creating a ripple effect across borders.
As scrutiny grows and federal pressure mounts, a broader crackdown on the misuse of B-1 visas may be imminent—one that could reshape cross-border freight operations and help restore balance to the U.S. trucking industry.
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