Posts Tagged “Mexican”
Overweight trucks legally transporting produce into the USA from Mexico might be possible, if the state of Texas eases some rules and regulations. The state and some others see a benefit of easing border congestion.
The Texas House of Representatives recently passed legislation to create an “overweight corridor” at the USA -Mexico border, and the Texas Senate is expected to vote on it soon.
The proposed corridor, from the Anzalduas Bridge to the Pharr/Reynosa Bridge, would be an area where Mexican trucks carrying fresh produce would be able to enter the U.S. even if they were overweight. Trucks would then offload their extra weight at a U.S. cold storage facility.
A Mexican truck, under current law, carrying produce that weighs too much, faces a stiff fine if it crosses into the USA.
Currently, trucks are weighed on the Mexican side of the border, and extra product is typically offloaded there if the truck is overweight. This procedure delays truck movement at the border and exposes perishable fruits and vegetables to the elements as it waits for another truck to pick it up.
Trucks that are overweight would be charged a fee, under the proposed law, which is much smaller than the current fine. The big rig would then be allowed to proceed to a cold storage facility in the overweight zone’s boundaries.
Arizona already has a similar law.
Funds from the overweight fees would be used to maintain the roads that will be carrying the heavier loads.
Is the Mexican truck border program falling apart? If so, that would be music 
to the ears of many, if not the majority in the trucking industry. On the other hand, produce shippers and others will not be too happy.
As reported here on August 23rd, a federal audit would be coming soon on the cross-border pilot program involving Mexican based trucking companies being allowed to operate in the USA.
The Federal Motor Carrier Safety Administration estimated that 46 Mexican carriers would participate in the three-year pilot program. The feds were planning to conduct 4,100 inspections during this time. However, only four Mexican trucking companies have participated, involving only four trucks and five drivers. A total of 89 inspections have been conducted by the FMCSA. Ouch!
The controverisal program has created some strange bedfellows in trucking. For example the Owner-Operators Independent Drivers Association (OOIDA) and the International Brotherhood of Teamsters seldom agree on much of anything. However, they’ve tightly held hands fighting this issue based around fears that a flood of Mexican trucks in the USA will drive down freight rates, many of which are not much different from 20 years ago. There also are concerns by owner operators over safety issues with Mexican equipment and lack of training among Mexican drivers.
Meanwhile produce shippers and others favoring Mexican trucking access to USA markets like the idea of greater competition leading to lower freight rates.
If the pilot program falls apart, with few Mexican trucking companies interested in participating, some produce shippers are concerned the Mexican government will re-implement tariffs of everything from apples to pears and potatoes – with some tariffs being as high as 20 percent.
The North American Free Trade Agreement (NAFTA), under which this pilot program is operating, requires the USA to permit cross-border trucking. However, legal challenges over the years by American carrier groups have prevented Mexican trucks from operating north of the border for over 10 years.
As expected, there will be a record number of cherries shipped from 
Washington state this season by produce haulers.
Washington state had shipped 18.7 million boxes of cherries as of August 22nd. If you include the Northwest, in other words, mostly Oregon, as of Aug. 22, 22.8 million boxes of cherries had been shipped, which also is a record. By the end of August most of the fruit will have been packed and shipped, and total volume will likely top a record 23 million boxes.
California table grape shipments are ahead of schedule this season due to the warmer-than-normal weather. The primary concern is if the San Joaquin Valley heat eventually starts taking a toll of the vineyards, which could lead to quality problems, something we’ll watch out for as it could impact claims or rejected loads for produce truckers.
It appears this year will be the first time California hits 100 million or more boxes of grapes.
In the Lower Rio Grande Valley of Texas, watermelon shipments continue. Quality appears good enough that you should be able to avoid unfair claims or rejected loads – depending of course, upon whom you are delivering to. There also are steady shipments of Mexican citrus, tropical fruit and vegetables crossing the border into South Texas.
In the Hudson Valley of New York, various vegetables such as sweet corn are being loaded in light to moderate volume. The new apple harvest has just started and volume is very light, but increasing.
South Texas produce loads – grossing about $220o to Atlanta.
San Joaquin Valley grapes – grossing about $4300 to Chicago.
Fresh table grapes from Mexico should start crossing the Mexican-U.S. border
at Nogales, AZ within the next couple of weeks. Initial volume will be light, but will increase quickly. Beginning in early May there should be around 2.5 million cartons of grapes crossing the border weekly for distribution throughout the United States and Canada. This volume should continue until around the middle of June. From there it will start a seasonal decline with crossings ending in early July. In total, there should be around 15.5 to 16 million cartons of Mexican grapes cross the border.
As grape crossings increase, many of the spring vegetables from Mexico are decreasing.
Mexican veggies at Nogales – grossing about $2400 to Chicago.
There’s been the ongoing political fight involving the trucking aspects of the 
North American Free Trade Agreement since the Clinton administration. Several months ago the Obama Administration implemented a pilot program whereby Mexican trucking companies could begin operations in the United States.
Apparently about 20 trucking companies from south of the border are awaiting approval from the U.S. to begin operations here. Produce shippers are salavating at the prospects of access to more transportation and cheaper rates to move fruits and vegetables to markets across the U.S. and Canada. Meanwhile, many in the trucking industry are fighting made over the prospects of unsafe Mexican trucks undercutting freight rates.