Subscribe to our free, weekly email newsletter!


LaHood says Mexican truckers may have green light

LaHood reminded shippers that his department released a concept document that will serve as a starting-point for negotiations with Mexico.
By Patrick Burnson, Executive Editor
January 19, 2011

Transportation Secretary Ray LaHood told shippers at the SMC3 annual winter meeting in Atlanta yesterday that cross-border trucking would be revived “as soon as possible.”

“President Obama made a commitment to fulfill our obligations under NAFTA – and this is part of it,” he said. “We need to ensure that Mexican trucks on American roadways are held to rigorous safety standards – just as American trucks are.  We also need to address retaliatory tariffs on $2.4 billion worth of U.S. products.  They’ve hit 99 major exports like apples, grapes, pears, potatoes, Christmas trees, and pork products.  And they’re costing jobs.”

LaHood reminded shippers that his department released a concept document that will serve as a starting-point for negotiations with Mexico.

“It incorporates safety suggestions from members of Congress, the trucking industry, labor, and safety advocates,” he said. “Ultimately, we will put forward a proposal for your consideration and comment.”
He won’t have to wait long to receive comment from U.S. organized labor factions, however.

“It makes no sense to let Mexico’s trucking companies take American truck drivers’ jobs and depress American workers’ wages,” said Teamsters General President James P. Hoffa.

In comments made last week, he told Michigan factory workers that the union “will fight like hell” against opening the border to Mexican trucks.

“We simply don’t believe U.S. taxpayers should pay to let more Mexican companies depress American workers’ wages,” he said.

The jobs issue notwithstanding, some industry analysts have noted that NAFTA compliance is a “win” for the supply chain community.

“The domestic and intermodal carrier can combine in partnership with the shipper to build cross-border services,” noted William J. Rennicke, a partner in Oliver Wyman’s corporate finance practice.

“Often the carriers can provide effective process management in various parts of the supply chain without having the shipper make a large investment in a remote operation,” he said.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

Article Topics

News · Trucking · Transportation · SMC3 · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA