Cross-border trucking makes the cut in proposed DOT budget

By Jeff Berman, Group News Editor
February 18, 2011 - LM Editorial

With a high level of acrimony surrounding the U.S.-Mexico cross-border trucking program in recent years, there are some recent signs that the effort may be regaining its footing.

The most recent example of this a $50.4 million request included in the Department of Transportation’s proposed fiscal year 2012 budget “to support cross-border inspections and the Mexican long-haul program.”

While the details of how the funding would be allocated were short on specifics, it did note that $5 million of the existing funds are dedicated to initiate a multi-year strategy for improving facilities along the U.S.-Mexico border.

In 2009, the pilot program for cross-border trucking was eliminated as part of the White House’s $410 billion Omnibus Appropriations Act, H.R. 4105. Even through this program-killing measure was approved, that Obama administration said it would work to create a new cross-border, long distance trucking program between the U.S. and Mexico. Soon after the program was eliminated, the Mexican government said it would place tariffs on roughly 90 American agricultural and manufactured exports as payback for the U.S. decision to shutter the program.

These tariffs amount to $2.4 billion of American goods, ranging from fruit juices to pet food to deodorant, among others, ranging from 10 percent to 45 percent, with affected products coming from 40 states

In January, LaHood shared “an initial concept document” with members of Congress for a long-haul cross-border Mexican trucking program. This document prioritizes safety while satisfying the United States’ international obligations.

“This [program] is the law, and it is part of NAFTA,” said LaHood at an industry conference earlier this year. “We have to do it, and when it was suspended by Congress, I met with more than 30 members of Congress to tell them we need to get this going again. Every member talked about safety, as did trucking groups and unions. Our proposal addresses a lot of the safety issues, and now a team of DOT safety officials are meeting with Mexican officials to flesh out a final proposal, because we have to under NAFTA.”

LaHood said it is likely there will be a final agreement by mid-year for the cross-border trucking program, adding that there is pent-up demand from both Mexico and the U.S. to get a final plan in place. He added that this new plan was done without input from the Mexican government and was based largely on feedback from Congress and industry stakeholders.

For more articles on U.S.-Mexico cross-border trucking, please click here.



About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(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

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU, and POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU.

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

About the Author

Jeff Berman, News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA