Information for those worried about Mexican Truckers in US

[CapitanGhost]

I visit CAD almost every day in the last few months, and I like the advaice
most of you give to people asking all kinds of questions about the trucking business, It all changes when the Mexican trucks and drivers topic comes in, there is some people in this site that clearly shows the
hate they feel for non anglo people but mainly to Mexicans in general
not just to Mexican divers, But this is about Mexican Carriers and Drivers
There is people very concerned about the safety of the Mexican trucks
First Mexican Carriers make more money just with the transfer of loads
across the bridges form US to Mexico and viceversa than delivering long
haul to the North of USA a Mexican Carrier with just 5 trucks can make
$3000.00 per day with just 3 20 miles trips per truck and they work 6 day
per week, for a mexican carrier to come across with his trucks must obtain a USDOT/MX number assigned by the FMCSA (FEDERAL MOTOR
CARRIER SAFETY ADMINISTRATION) which conducts a rigorous inspection
to the trucks, back grounds of Carriers and his Drivers which must have
a Federal Drivers License fro Mexico`s Federal Gov Just like the US Class A each truck can come across 3 or 4 times per day and in every trip they
stop at DOT and DPS inspection stations at the US side of the bridge, if this inspectors find any thing wrong as little as a stop light bulb this truck
is put Out of Service and is not allowed to live until the problem is fixed
and a fine is paid, that is why carriers make sure all truck are in complice of USA safety regulations before sending any truck to the USA, so dont worry unless you think your inspectors take bribes and let the trucks go
without inspection (forgive my spelling I started learning english 5 motnhs ago to get my CDL-A which I now have)

[BanditsCousin]

I don't see any hate towards Mexicans on this site. I do see a lot of hate for ILLEGAL Mexicans, which I 100% understand.

I do see where you are coming from on mexican trucking equipment, and that has been a big concern with many here on CAD. Thank you for addressing the issue on the strict inspections these vehicles must undergo. Hopefully it clears the air on this issue.

[GMAN]

I have been along the border and have seen a lot of trucks that should have been put out of service. Granted, it has been a couple of years since I have spent much time along the Southern border, but unless things have changed, I would not want to be on the road with most that I have seen. I am glad to hear that things have improved. Since you are from Southern Texas, I assume you live either around Laredo or El Paso.

[PackRatTDI]

is put Out of Service and is not allowed to live until the problem is fixed

Damn, they must be from Ohio! :shock:

[bulldog2036]

EL Paso lies on the most western tip of Texas, hardly southern.

[terrylamar]

EL Paso lies on the most western tip of Texas, hardly southern.

I bet it's still south of you. 8)

[Orangetxguy]

LOL...The only thing further south of El Paso in America.....is Mexico.

I was at the crossing at McAllen in late february, and saw plenty of beat up Mexican carrier trucks. Most were late 70's early 80's models. They were only making the cross border transfer's...right there in the Crossing area. The trucks taking the trailers from there were much newer...mid 90's to early 2000's. And..they were the trucks wearing USDOT numbers, as well as the TXDOT number.

I do not have anything against Mexicans drivng truck in America, as long as they are "Legally" here, can speak English as well as understand English, and are safe drivers, in maintained equipment. It does not need to be "New" equipment...simply maintained.

BTW, over the last 28 odd years, I have worked with more than a few "Immigrant" drivers. Russians, Indian's (India), Pakistani's, Iranians, Iraqi's, as well as Mexican, Guatemalan, and Honduran. They all spoke excellent english, were excellent drivers, and they were all Legal Immigrants.

I expect the US government to prevent the US labor market from being flooded with "Cheap Labor", there by protecting American Citizen wages, as well as lives. Even "Legal" Mexican drivers, working for a Mexican carrier, needs to generate enough income, to support his/her family, and live decently (ie; food, clean clothes, showers) on the road as well...which is not cheap here in America. And yes...I do differentiate between a Mexican driver, from Mexico, and a Mexican-American driver, born and raised in the good ole USA.

[Cam]

I expect the US government to prevent the US labor market from being flooded with "Cheap Labor", there by protecting American Citizen wages, as well as lives.

Why? Since when has the federal government been in the business of controlling labor markets? And how much downward pressure on freight rates is too much? Not being argumentative, not even taking a side, but how about we tell it like it is?

[CapitanGhost]

I have been along the border and have seen a lot of trucks that should have been put out of service[quote]
Probably what you do not like of those truck is that they are ugly and old
but mechanicly are up to the USA safety standars, and are makeing more
money than many BRAND NEW AMERICAN TRUCKS. this all american trucks with special permits from the Mexican Gov. to go into Mexico without paying inportation duties, Here in the Brownsville,TX area where
I live you can buy a 1997 Freightliner for $16.000 and start makeing $600
a day just hauling transfer loads. Regarding freight rates Mexican shippers
pay much better rates than American shippers, for example a load going
from Laredo,Texas to Laredo,MX pays $200 to a transfer carrier and from Laredo,MX to Monterrey,MX it pays $5000 pesos about $500 dls for a 180 miles trip that is $2.77 per mile for a load to Mexico City from Laredo,MX
the rate is $15.000 pesos for a 600 mile trip (1000 KM) $2.40 per mile.
See why Mexican Carriers are not interested in taking away loads from
American Truckers that run for as little as $0.99 per mile

[Cam]

[quote="CapitanGhost"]I have been along the border and have seen a lot of trucks that should have been put out of service

Probably what you do not like of those truck is that they are ugly and old
but mechanicly are up to the USA safety standars, and are makeing more
money than many BRAND NEW AMERICAN TRUCKS. this all american trucks with special permits from the Mexican Gov. to go into Mexico without paying inportation duties, Here in the Brownsville,TX area where
I live you can buy a 1997 Freightliner for $16.000 and start makeing $600
a day just hauling transfer loads. Regarding freight rates Mexican shippers
pay much better rates than American shippers, for example a load going
from Laredo,Texas to Laredo,MX pays $200 to a transfer carrier and from Laredo,MX to Monterrey,MX it pays $5000 pesos about $500 dls for a 180 miles trip that is $2.77 per mile for a load to Mexico City from Laredo,MX
the rate is $15.000 pesos for a 600 mile trip (1000 KM) $2.40 per mile.
See why Mexican Carriers are not interested in taking away loads from
American Truckers that run for as little as $0.99 per mile

Hold on right there! Let's skip the part about the maintenance of the Mexican trucks- that's for the American public and the DOT to worry about. It's a distraction. There was one post on here saying Mexican drivers average 14 cpm. Now, are you flat out saying or are you just implying that freight rates in Mexico are higher than in the US? I'm calling complete BS on that one. If I had to spend the rest of the night googling articles about Mexican freight rates to prove the case I just might. Do I really need to do that? Is there anyone in his right mind who believes freight rates in Mexico are higher than in the US?

[WildK9]

I spent 6 years living in Edinburg,TX. I talked to many drivers, doing those transfers, and every one of them, told me the same thing. They claim to be making $5 - $10 dollars per transfer. Unless they were lying, you MUST be. I tend to believe them, as they didn't look like they made anywhere near $500 for a 180 mile trip. I know looks can be deceiving, but I think they were being honest. That's one reason why the Mexican Carriers can make $3000 per day doing transfers, (your words) they pay the drivers so poorly! :wink:

[CapitanGhost]

You do not need to spend all night googling, just call any Mexican Carrier
and request a quote from any town in the border with Mexico to any City
in central Mexico most Central Mexico Cities are about 600 to 700 miles
from the Border with the USA for ex Gudalajara, Mexico City, or Guanajuato, they will quote from $10,000 pesos to $15,000 pesos
depending in the kind of load Mexico rates for freight are much higer than
USA (Peso rate is $11.50 to $1.00 dllr)

[bulldog2036]

Nope terrylamar, Juarez Mexico is south of me...... :wink:

[CapitanGhost]

A Mexican driver doing transfers earns $200 pesos per trip and makes
an average of 3 per day that is about $60 dlls per day which is a good salray
for Mexico where labor minimum wage is $55 pesos per day (about 5 dlls)
In South Texas the minmum wage for labor is $5.50 per hour (about $44.00 dlls per day) so as you can see mexican driver make more money
than meny americans at the South Border of the USA

[terrylamar]

Nope terrylamar, Juarez Mexico is south of me...... :wink:

Anthony is further West. 8)

[Cam]

You do not need to spend all night googling, just call any Mexican Carrier
and request a quote from any town in the border with Mexico to any City
in central Mexico most Central Mexico Cities are about 600 to 700 miles
from the Border with the USA for ex Gudalajara, Mexico City, or Guanajuato, they will quote from $10,000 pesos to $15,000 pesos
depending in the kind of load Mexico rates for freight are much higer than
USA (Peso rate is $11.50 to $1.00 dllr)

I'm going to hang with you on this. Trust me, I'm going to learn a lot more googling than I am picking up my cell phone trying to talk to a Mexican trucking company. Few things:

One, the brouhaha here in the states right now has to do with the impact of this trade deal on our freight rates. That said, we're taking an aside to discuss Mexican freight rates.

We also need to pay attention to anecdotal evidence. That's when someone tells about their own experience to try to make a general point. Anecdotal evidence is useful but it has to be used carefully. Sometimes yours or my personal experience doesn't represent the overall situation.

I'm still googling looking for a comparison of Mexican and American freight rates. In the meantime, I found the following article that discusses some of the ABC's of how this affects American trucking and American freight rates. I will say I am surprised that the American companies aren't perched to dominate the cross border trade with their 'deep pockets' (lots of money to invest). Or, maybe they are. Maybe those 10 companies are all behemoths like Celedon that have the tremendous amounts of cash it'll take an American company to get started. Ten big companies could put quite a squeeze on 1,000 little ones.

U.S. firms not eyeing Mexico

Web Posted: 03/30/2007 08:32 PM CDT

Meena Thiruvengadam
Express-News Business Writer

Although more than 800 Mexican trucking companies are waiting for access to U.S. roadways under the cross-border trucking pilot program announced last month, fewer than 10 American companies are seeking the same access in Mexico.
The U.S. government is optimistic more U.S. truckers will come forward to join the program, but industry leaders are skeptical because they say the risks outweigh the benefits.

"We believe we'll see more U.S. firms apply," U.S. Department of Transportation Secretary Mary Peters said in San Antonio last week.

Jim Hoffa, general president of the Teamsters union, isn't so sure. "No one wants to go down there," he said in a recent interview. "There are too many security problems — stolen tires, stolen equipment."

U.S. trucks haven't been allowed in Mexico since at least 1995, when the U.S. denied Mexican truckers access to American roadways under cross-border trucking provisions included in the North American Free Trade Agreement. Mexican trucks haven't been able to drive freely in the U.S. since 1982.

Under the DOT pilot, trucks from 100 Mexican companies would be allowed to make deliveries anywhere in the U.S., but those deliveries would have to originate in Mexico. Up to 100 U.S. companies also would be allowed to make deliveries in Mexico.


"This whole scheme is being sold under the guise of reciprocity, but that reciprocity is largely a paper reciprocity," said Herbert Schmidt, president and CEO of Joplin, Mo.-based Contract Freighters Inc. "The difference is security issues, road infrastructure, trucking infrastructure and tax laws."

Claudio Gallegos of the National Confederation of Mexican Carriers said U.S. truckers are right to worry about highway robbery in Mexico.

Bandits have a long history of stealing rigs and robbing freight on Mexican highways, targeting trucks carrying cargo with high black market value like clothing and medicine, Gallegos said.

In the past three months, Contract Freighters, which partners with Mexican carriers, has had four trailers of textiles stolen, Schmidt said.

Robbery rates have dropped in recent years, but Gallegos said thieves are no longer stopping at cargo. "Many of our trucks are stolen and taken to be sold in Central America," he said. so, does telling the truth make one a racist?Another issue U.S. companies would have to deal with is obtaining proper insurance for driving in Mexico. "Most of the policies are going to exclude coverage in Mexico just as your personal auto policy would exclude Mexico," said Brett Anderhub, vice president of the cargo insurer Rekerdres & Sons in Dallas.

Mexican trucking businesses have more to gain from the implementation of cross-border trucking provisions than their U.S. counterparts, said Rob Barnett, a San Antonio attorney whose practice focuses on international business transactions.

"If you have a trip from Monterrey to San Antonio, right now half that trip is being driven by a U.S. driver at more than $20 an hour. The other half is by a Mexican driver at about $3 an hour," he said.

"If you can make it so the trip is driven by a Mexican driver for a Mexican company the whole way at $4 an hour, they're in a position to gain much more."

http://www.mysanantonio.com/business...g.2cde51f.html

[WildK9]

A Mexican driver doing transfers earns $200 pesos per trip and makes
an average of 3 per day that is about $60 dlls per day which is a good salray
for Mexico where labor minimum wage is $55 pesos per day (about 5 dlls)

So, you're telling me that all those drivers were lying about how little they made? Sorry, too many of them, and only one of you. IMHO - the Mexican Carriers don't pay them NEAR what YOU claim they do. :wink:

In South Texas the minmum wage for labor is $5.50 per hour (about $44.00 dlls per day) so as you can see mexican driver make more money
than meny americans at the South Border of the USA

Interesting, you should say that. I, personally, didn't know of ANY American drivers, making LESS than $44.00 per day down there. Regardless of what company they worked for, they all made more than that per day. Including local end dump drivers, the lowest of them being $8 per hour. So, NO, I don't see where they make more than "many Americans at the border". Sorry!

[Cam]

Probably what you do not like of those truck is that they are ugly and old
but mechanicly are up to the USA safety standars, and are makeing more
money than many BRAND NEW AMERICAN TRUCKS. this all american trucks with special permits from the Mexican Gov. to go into Mexico without paying inportation duties, Here in the Brownsville,TX area where
I live you can buy a 1997 Freightliner for $16.000 and start makeing $600
a day just hauling transfer loads. Regarding freight rates Mexican shippers
pay much better rates than American shippers, for example a load going
from Laredo,Texas to Laredo,MX pays $200 to a transfer carrier and from Laredo,MX to Monterrey,MX it pays $5000 pesos about $500 dls for a 180 miles trip that is $2.77 per mile for a load to Mexico City from Laredo,MX
the rate is $15.000 pesos for a 600 mile trip (1000 KM) $2.40 per mile.
See why Mexican Carriers are not interested in taking away loads from
American Truckers that run for as little as $0.99 per mile

A Mexican driver doing transfers earns $200 pesos per trip and makes
an average of 3 per day that is about $60 dlls per day which is a good salray
for Mexico where labor minimum wage is $55 pesos per day (about 5 dlls)
In South Texas the minmum wage for labor is $5.50 per hour (about $44.00 dlls per day) so as you can see mexican driver make more money
than meny americans at the South Border of the USA

WildK9, I think he was just saying that Mexican border truckers can make more than an American fry cook at McDonalds. He wasn't saying they make more than American truckers. But then we could ask, so what?

Got a question, CaptainGhost. Why would they pay you $600 a day when they can hire a Mexican driver and pay him $60?

[Cam]

Got a question, CaptainGhost. Why would they pay you $600 a day when they can hire a Mexican driver and pay him $60?

I give up. Way, way too much time trying to find information comparing trucking rates in the US v. Mexico. I'll hold with the above question. If Mexican drivers are earning so little, 14 cpm, somewhere between $15 and $60 per day, whatever, where's all that money going if rates are so high? What's prohibiting the law of supply and demand from driving rates down? You'd have to be saying Mexican carriers are charging more than American carriers and paying their drivers a fraction. Could be...but I have my doubts.

[CapitanGhost]

$600 Dlls per day I am talking about what the truck makes, a round trip
from Mexican yard to American Yard is about 20 miles and takes about
3 hours at 6 miles per gallon that is about 3.5 gallos per trip which pays
$200 dlls that is $11 in fuel + $20 driver + $30 bridges tolls=$61
leaving $131 per trip to the truck from there you can deduct the fixed costs it will probablly leave $125 net per trip and the most humble Carriers operates over 50 trucks every day, for the long haul trips
Mexican Carriers use new truck as expesive as the american new truck
as a matter of fact more expensive than american trucks, in Mexico a brand new T 2000 can cost close to $ 200,000 dlls, when you fill an application with the FMCSA for your USDOT/MX # they ask you to buy insurance for $750,000 from an American Insurance Company and there is Mexican Insurance Companies that will Insure American Cariers going to Mexico