Could cross-border expansion bring more loads for U.S. carriers? Also, Congress may act on FMCSA’s border move

As of last week, any Mexican carrier domiciled on the other side of the border can apply for authority to operate in the U.S. outside of the commercial border zone — a privilege previously reserved only for Mexican carriers admitted to the DOT’s cross-border trucking pilot program.

Overdrive readers noted their concerns last week with the potential effects the border opening could cause — undercut rates, less safe operators and lower driver pay, to name a few.

Likewise, labor and small carrier groups — the Teamsters and the Owner-Operator Independent Drivers Association, specifically — decried the move and questioned FMCSA’s decision.

Large carrier groups, like the American Trucking Associations and the Trucking Alliance, however, said they were fine with the expansion of cross-border trucking, so long as Mexican carriers abide by the same rules and regs U.S. carriers follow.

But will the move affect the way freight moves at the border? And could U.S. carriers be the beneficiary of more freight left on the U.S. side of the border by Mexican carriers with newly attained U.S. authority?

Trade between the U.S. and Mexico has already been on an upswing, improving alongside the expansion of the U.S. economy and the slow but steady recovery following the 2008-2009 recession.

And trucking has been the driving force of the growth — In October, truck freight carried to and from Mexico grew by 9.6 percent to $34 billion. October is the most recent month for which the DOT has produced NAFTA trade data.

So while concerns about rate undercutting and overall safety of Mexican carriers are appropriate, trucking could be on the receiving end of more, if not more efficient, freight at the U.S.’ southern border.

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Opening the U.S. border for Mexican carriers, however, likely won’t be without challenges. Rep. Peter DeFazio (D-Ore.) has already said he intends to use potential upcoming legislation to push FMCSA to address what he calls “ongoing concerns” with the program.

DeFazio said lawmakers will be taking a look at cross-border trucking with the upcoming renewal of federal highway funding — Congress’ stopgap measure cleared this summer expires in May.

According to an article from Politico, DeFazio said last week he is “waiting to hear about” the concerns he has with “what goes on on the Mexican side of the border.”

Politico’s article says DeFazio referenced a DOT Office of Inspector General report released late last year that concluded the agency did not have enough participants in its three-year pilot program to make proper determinations about safety of Mexican carriers.

FMCSA, however, says it had plenty of data, as it gathered more on other Mexican carriers not in the program.

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