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 ·

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

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 [email protected]

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!

Article Topics

SMC3 · Transportation · Trucking · All Topics
Latest Whitepaper
Making TMS an Enterprise Priority
To get the most out of a TMS investment, numerous parties across the organization should lend their expertise.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...