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Mexican Carriers with US athority

Discussion in 'Ask An Owner Operator' started by BigBadBill, Nov 23, 2013.

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  1. Nov 23, 2013 #1
    BigBadBill

    BigBadBill Bullishly Optimistic

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    So this was really much ado about nothing. Very few carriers in Mexico actually cared or wanted this. This week while talking to one of the carriers that is doing this he estimated that only 50 loads a week are being taken into the US past Laredo.

    It was neat to be able to say that I talked to someone doing this and get a real picture of what the few that are doing this operate like.

    First, he is complaining about rates. He is not happy that they are getting $1.90-$2/mile coming back to Laredo. Thought that was funny considering all the cut rates predictions. But they are paying drivers pretty well compared to a lot of US carriers.

    They operate their fleet (not sure if others do this) under the same rules for HOS in MX as they do in the US. Including EOBRs. His point is that if they have an accident in the US that they know that the focus is going to be on driver safety. So by doing it this way they are reducing financial risk.

    Oldest truck in their US fleet is 2011 (non-drayage). These are the same units they run in MX but they do have some 2010's in MX that they are in process of replacing. Pretty much same replacement cycle as US large fleets.

    My trip to Laredo was very enlightening.
     
    BigBadBill, Nov 23, 2013
    BigBadBill, Nov 23, 2013
    #1
    ruffrider and vanapagan Thank this.
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  3. Nov 23, 2013 #2
    baha

    baha Road Train Member

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    your are talking of only trucks on new cross border deal,good info.
     
    baha, Nov 23, 2013
    baha, Nov 23, 2013
    #2
  4. Nov 23, 2013 #3
    Dryver

    Dryver Road Train Member

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    As your avatar says you are "Bullishly Optimistic", many of us are "Bullishly Pessimistic" about MX trucks coming into the US.
    I doubt the average age of all trucks coming in will be 2011 or newer, most trucks I see while in MX are beat up JB Hunt and Schneider salvage.
    Though it is interesting to hear what the driver had to say.
     
    Dryver, Nov 23, 2013
    Dryver, Nov 23, 2013
    #3
  5. Nov 23, 2013 #4
    CondoCruiser

    CondoCruiser The Legend

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    Courtesy of the US gov't giving them to them for free while our drivers have to pay for them.

    Key words... while in MX.

    I think Bills picture is accurate is why the numbers are low. They have to be extra careful if they have US authority because they are under a close watchful eye. Anytime they implement a new program they watch it, review and discuss it. I wouldn't doubt the FMCSA doesn't have instant online access to their EOBR's. It's not like here you go boys have at it.

    I'd say in Mexico they look at us like we look at CA. You better have your ducks in a row if you are going there.
     
    CondoCruiser, Nov 23, 2013
    CondoCruiser, Nov 23, 2013
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    900,000-tons-of-steel Thanks this.
  7. Nov 23, 2013 #5
    markealy

    markealy Road Train Member

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    Tbm stage coach all over the road truck newer trucks you do see beat up trucks in mexico just like USA usually owner op trucks cash cows they get 750 dllrs from Monterey Mexico to Laredo Texas so a lot don't want to go further due to cheap freight rates in USA...... I was going to by a truck and do chi chi to Illinois but return trip was only 1.85 to cheap rather just drive for a company...
     
    markealy, Nov 23, 2013
    markealy, Nov 23, 2013
    #5
  8. Nov 23, 2013 #6
    BigBadBill

    BigBadBill Bullishly Optimistic

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    Somewhat understand being pessimistic with no data. But the program is up and running. All the carriers that want to come to US are coming. Will they grow? Likely not based on current rates. Most of the attitude had to do with rates and safety. That is showing to be false. And fact is, growing US/MX trade is good for US trucking industry. It has allowed manufactures to bring more operations back to North America.

    Don't judge drayage trucks with what is being run in MX. That segment of the industry, US or MX carrier, can't afford to put new equipment to run trailers back and forth across the boarder. They keep the new equipment running and let the junk sit at customs brokers waiting on paperwork and waiting in line at the boarder. Seeing how things operate from the business side was very eye opening.

    I asked about the free EOBRs. I got a laugh. He said the "cost' of the free EOBR was 3x what he paid for ones. The unit was free but he had to bring the trucks to Houston, pay for install and take it back to MX. All MT miles.

    Everything I learned talking to many MX carriers is that the ones interested in participating are. But it made for good political headlines.
     
    Last edited: Nov 23, 2013
    BigBadBill, Nov 23, 2013
    BigBadBill, Nov 23, 2013
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    yotaman, jdrentzjr and Dryver Thank this.
  9. Nov 23, 2013 #7
    rank

    rank Road Train Member

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    Did he happen to mention how much they pay for diesel over there? Hmmm?
     
    rank, Nov 23, 2013
    rank, Nov 23, 2013
    #7
  10. Nov 23, 2013 #8
    359

    359 Bobtail Member

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    I get such a kick outta this BS--plenty of MX carriers w/decent equipment--BUT--they know they really cant do any better coming up here--they are already doing well runnin to the border points and cross docking--SO why go all the way into interior of US--just to DH home or take low ball freight--Maybe they watched the whole US/Canada scenario---because as much as they might want to lie--ask the Canadian carriers HOW well that has worked out for them? HMM
    What you want to look at is how many supposed US carriers have been doing this for years--spend a little time in the RGV and look at he bigger companies there--see how many dual tagged power units they have--and watch them drop at their OWN yard and repower into MX--and vice versa
    Nice little niche they have--so why would they screw up a good thing?
     
    359, Nov 23, 2013
    359, Nov 23, 2013
    #8
  11. Nov 23, 2013 #9
    BigBadBill

    BigBadBill Bullishly Optimistic

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    Nope, but what does that have to do with anything?

    Not sure I follow? US/Canada freight is an issue for US carriers coming back into the US.
     
    BigBadBill, Nov 23, 2013
    BigBadBill, Nov 23, 2013
    #9
  12. Nov 23, 2013 #10
    trees

    trees Road Train Member

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    Based on real world economics, and the depressed average earnings for day laborers who are competing with undocumented workers here in the US, I'd say that thinking that an influx of Mexican trucks entering the US markets as having a benign effect is simply unrealistic.

    There will be an economic impact, it will be substantial, and this will not be beneficial for American trucking companies and American truckers.
     
    trees, Nov 23, 2013
    trees, Nov 23, 2013
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    old time Thanks this.
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