First Mexican Truck Crosses into US, Tariffs Dropped

The produce industry has celebrated the news that Mexico has officially lifted tariffs that have amounted to more than $900 million of US agricultural products since 2009; this helps to settle a costly dispute over the Mexican trucking pilot program. We discussed this topic back in a post in April; as a review, Mexico is the United States third largest trading partner, and the Mexican tariffs were imposed after years of disputes over a provision in the NAFTA that allowed Mexican long haul trucker to enter US highways in 2000. When US congress blocked funding for the program, the dispute was set into motion.

The first Mexican truck crossed the US border on Friday, Oct 21, 2011 as part of the new cross-border trucking pilot program between the Mexico and the United States. The truck crossed the Rio Grande at the Laredo point of entry, and was bound for Garland, TX. Earlier that Friday, Mexico lifted the remaining tariffs on 99 U.S. products that are exported to Mexico.

With this new pilot program, Mexican approved carriers will be able to operate in the United States for up to 3 years, and similarly, US carriers can operate throughout Mexico for the same time period.

This momentous event means that for many US growers, a greater opportunity for increase in volume exports, and possibly product price increases.

Have any comments on the new pilot program and the elimination of the tariffs? Please share!

References:
Mexico Drops Tariffs as first Mexican Truck Roll over to US border. http://theproducenews.com/index.php?option=com_content&view=article&id=33163:mexico-drops-tariffs-as-first-mexican-truck-roll-over-us-border&catid=43:featured&Itemid=41. Accessed on 10/27/2011.

In other news….

Survey Says…

The 2011 ‘Jerry Maguire says, “help us help you”’ Customer Survey, and the 2011 “comchek-ing in” Carrier Survey are now complete! The surveys ran from Sept 15th – Oct 15th, 2011, with prize draws occurring on Oct.20th, 2011. Two customer participants are now the lucky owners of Apple 8GB iPod Nanos, and four carrier participants won prizes of $50 cash vouchers!!! Congrats to all our winners!

UWC contracted out the services of Survey Monkey to conduct these blinded and confidential surveys. Thanks to all who participated; the results have given us great insight on how we can serve our partners better!!!

Phantom Produce!!

Halloween is almost here, and to celebrate, we are having our 2nd annual office pumpkin carving contest. Stay tuned next week to see the winner!!!!

Oktoberfest

October: the start of Fall, and for the refrigerated produce industry in North America, the time when produce starts transitioning to ship out new areas. UWC closely follows these transitioning trends, as it allows us to plan for lanes and anticipate truck demand. So, let’s look at 4 full truckload products and how they are transitioning.

Avocadoes: The season in California has concluded. Mexico inventories have been noted as lower due to heavy rains halting the harvest at the end of last week. Weather in this region has improved, and harvest should increase by the end of this week. In particular, movement from crossings through Texas are expected to increase.

Cucumbers: In the Baja, light production has continued throughout this week; many growers have moved through the flush of new field crop. Some early production has started out of mainland Mexico, with crossings through Nogales expected to increase seasonally, and crossings from Otay Mesa, CA expected to decrease slightly. Light shipments have also begun out of the Central and South Florida districts, with sufficient volume expected by the end of October.

Bell Peppers: The California Central Valley and Oxnard district crops are beginning seasonal decline, with overall volumes set to drop. Green bell peppers will begin out of the California Desert/Coachella Valley lightly starting next week. No real volume is expected until mid-November. The supplies of colored bells remains good, but are starting their seasonal decline. Mexico crossings through Arizona are expected to arrive the week of Oct 24th, with reportable volumes expected by mid-November.

Tomatoes: Growers and shippers in the San Joaquin Valley, California are in their last couple of weeks of harvest. Most product is still coming out of this area, along with the California Coast, and some Mexico Crossings through Otay Mesa, California. Demand is set to shift to the East by the end of October, with light harvesting set to start at that time in West and Central Florida.

Stay tuned for more news/transition updates!! Have any insight to share? What is the best way you plan for these transitions??

References:

The Packer – Crops and Markets. http://www.thepacker.com/fruit-vegetable-news/crops-markets. Accessed on Oct. 19, 2011.

Pro-Act; The Source Market Report. http://web1.digitalmotionsolutions.com/proactusa.com/PDF/The%20Source.pdf. Accessed on Oct. 19, 2011.

Welcome to July - Bring on the Celebrations!!!!

Tomorrow is the start of July, and it’s hard to believe we are halfway through 2011 already!!! This weekend will be filled with National celebrations as Friday marks Canada Day, and Monday is the Fourth of July in the United States. The weekend is sure to be filled with plenty of barbeques and fireworks; so, let’s take a look at the movement of some of the July BBQ favorites that the produce industry brings to the table:

- Corn: The great BBQ staple!!! There is strong demand for corn at this time of year across the Nation, and quality is predicted to be very good. However, the weather has affected some productions; Florida’s spring weather has potentially delayed movement; South Georgia continues to ship corn, although movement out of this area has decreased slightly; California is seeing a seasonal increase in movement with trading out of this area noted as active; Eastern Virginia harvest has just begun, and growers expect the crop to be in good condition.

- Cherries: Now is the season for everyone’s favorite stone fruit! Although it has been noted that the crop is running 2 weeks behind, movement is steadily increasing out of the Yakima and Wenatchee Districts in Washington, with the predominant variety being Chelan cherries; movement out of the Stockton, Lodi, and Lynden Districts in California is decreasing, and only light shipments will continue through the end of this week.

- Watermelon: A front-runner for eating contests this weekend! Excellent supplies will be coming out of Georgia, where hot and dry growing conditions are producing high-sugar watermelons; Texas, Alabama, and South Carolina are also all shipping with trading being mostly active out of all these areas; in Florida, the season is winding down with fourth of July shipments being one of their last.

- Blueberries: Blueberries are always a favorite in the summertime, and their role in the red, white, and blue themed displays for US July 4th ensure strong demand. Blueberry supplies are in ample supply from New Jersey right now; Michigan production is running a bit behind; Growers in Georgia, North Carolina and Mississippi will be moving supplies, but not to the volume that New Jersey has; out of the West Coast, California expects to be winding down their production, and the Northwest region is running a week behind due to cool growing weather this spring.

We hope everyone enjoys their start of July Celebrations!! Happy Canada Day and Fourth of July to Everyone!! Have fun, enjoy your fruits and vegetables, and be safe!!

Did you know??

Canada is turning 144 on Friday!! And, The United States is celebrating 235 years of independence this Monday! And not to forget about Mexico, they will be celebrating 201 years on Sept 15th!!!!! We think we all look great for our age(s)!!!

References:

http://www.thepacker.com/fruit-vegetable-news/produce-commodity-pricing. Accessed on June 30.

http://www.thepacker.com/commodity-vegetables/corn/Supplies-of-some-Fourth-staples-could-be-lower-123492374.html. Accessed on June 30.

The Blitz is on!!!!!!

The CVSA annual Roadcheck safety blitz is happening this Tuesday June 7th to Thursday June 9th, 2011. Much of the focus of this year’s Roadcheck (similar to past years) will be enforcing HOS and logbook violations. One of the other primary reasons cited by inspectors for placing vehicles and drivers out of service is brakes.

Have some questions about Roadcheck? Read on to find the answers!

So, who is CVSA??
The Commercial Vehicle Safety Alliance is made up of local, state, provincial and federal motor-carrier safety officials and industry representatives in the United States, Canada, and Mexico. The CVSA sponsors Roadcheck and counts on participation by the FMCSA, Pipeline and Hazardous Materials Safety Administration, Canadian Council of Motor Transport Administrators, Transport Canada, and the Secretariat of Communications and Transportation (Mexico).

What typically happens during Roadcheck?
Roadcheck is the largest targeted enforcement program on commercial vehicles in the world, with approximately 14 trucks or buses being inspected, on average, every minute from Canada to Mexico during the yearly 72 hour period. Each year, approximately 100,000 CVSA-certified local, state, provincial and federal inspectors at 1,500 locations across North America perform truck and bus inspections. As an example, in 2010, CMV enforcement conducted 65,327 inspections across the United States alone.

What should you, as a carrier, pay special attention to?
These areas should be maintained and in compliance YEAR ROUND, but here is typically what inspectors will be checking out for violations:
- Logbooks and HOS
- Brakes
- Coupling Devices
- Fuel & Exhaust Systems
- Frame, Van, & Open-Top Trailers – for cracks and corrosion
- Lighting
- Securement of Cargo
- Steering
- Suspension
- Tires, Wheels, Rims, & Hubs

Did you know, if you are put out of service, it will cost you an average of $861??? – and that doesn’t even include the costs of fines or repairs as a result of the inspection! Make sure you will pass inspections this year!!! For more information on Roadcheck 2011, visit the CVSA’s website!!!!

Do you have any personal experiences with Roadcheck? Ever had an inspection during this time? Please share!!!

Industry Hot Point – Update: United States & Mexico Cross-Border Trucking Agreement

Over the past few weeks, the Obama Administration has further revealed its plan to forge ahead with opening up the US-Mexico border to long-haul trucks from Mexico. In our previous post, we outlined how the basics of the program and what it will change. Today, we will go into more details regarding the plan, and some important time frames.

So, what are the plan details?

As outlined by the Administration, the plan is to implement a three stage program. Once a company from Mexico has operated in the US for 18 months and they pass a compliance review, they will be granted permanent authority. So, even if the pilot program was shut down, any Mexican motor carrier with permanent authority would be allowed to continue to operate long-haul in the US.

Where does this leave Mexican Carriers who have participated in previous pilot programs?

These types of carriers will be given “credit” for the time that they have previously operated in the US. So, for example, if a company completed 6 months in the previous program, they could theoretically get permanent operating authority after another 12 months.

How often will inspections of Mexican trucks occur?

During this first stage of the program, each truck participating in the program will be inspected each time it enters into the US. However, the plan is for driver licenses to be checked only 50% of the time. Each truck from Mexico will be required to be equipped with GPS or Electronic On-Board Recorders (EOBRs).

What will happen with the tariffs Mexico imposed on US Exports?

Mexico first imposed retaliatory tariffs on US Exports almost two years ago. Under this new agreement, US shippers of fresh fruit and vegetables will now be able to move their product across the border without being subject to a tariff. The tariffs place on US products by Mexico will be reduced by 50% when a final agreement is signed. The Department of Transportation Fact Sheet estimates this will be in approximately 60 days. The remaining 50% will be removed when the first Mexican company receives its operating authority to run long-haul in the United States.

Want to weigh in on this discussion? Are you for or against this program? Share your thoughts!!!


References:

Special Report: DOT forges ahead with cross-border plan. http://www.landlinemag.com/Special_Reports/2011/Apr/040811.shtml. By Jami Jones. Accessed on April 8, 2011.

Industry News Alert - United States, Mexico Reach Cross-Border Trucking Agreement

On March 3, in a joint news conference, United States President Barack Obama and Mexican President Felipe Calderon announced that both countries have reached a preliminary agreement set to resolve the long-standing dispute over cross-border trucking.

What does the agreement outline?

The agreement aligns with previous requirements that Mexican motor carriers will be required to apply for authority from the Federal Motor Carrier Safety Administration (FMCSA) and also demonstrate that they meet the same safety standards as United States fleets. Under this agreement, Mexican trucks will have the same situation as Canadian trucks, and will be prohibited from hauling freight between destinations within the United States.

What will the agreement change?

If the agreement is approved by Congress, Mexico would remove the tariffs it has imposed on U.S. fresh fruits and vegetables. Shippers of apples, pears, cherries, apricots, strawberries, table grapes, grapefruit, oranges, onions, lettuce, for example have suffered at one time or another during the period since the tariffs were first imposed in 2009.

When is all this supposed to happen?

After the final draft agreement is signed, Mexico has agreed to suspend 50% of these tariffs; this could happen in as little as two months. The remaining 50% of tariffs would be suspended once the first Mexican carrier is granted operating authority under the new program, which could happen perhaps a couple of months after the final draft agreement is signed.

What does it mean for the transportation industry?

As with any government/industry agreement, positive and negatives have been brought up by stakeholders. One significant positive point is that U.S. shippers of fresh fruit and vegetables will now be able to move their product across the border without being subject to a tariff.

One negative that some in the industry have highlighted is that allowing Mexican trucks into the U.S. will increase risks to motorists and open the doors for increased drug trafficking. This threat will be eased with increased and strict monitoring of all trucks that cross the border.

Whatever the outcome, positive and negatives will be discussed, and UWC will strive to keep all involved updated.

References:

U.S., Mexico lay out path to end trucking dispute – The Packer – Published on 03/03/2011 by Tom Karst. http://thepacker.com/U-S--Mexico-lay-out-path-to-end-trucking-dispute/Article.aspx?oid=1310721&aid=117&fid=PACKER-HANDLING-AND-DISTRIBUTING. Accessed on 03/08/2011.

U.S., Mexico reach Cross-Border Trucking Agreement – TIA Logistics Weekly – 03-09-2011.

Alert: Roadcheck 2010 to be held June 8, 2010

Roadcheck is known as the largest targeted enforcement program on commercial vehicles in the world, with an estimated 14 trucks or buses being inspected every minute from Canada to Mexico during the designated 72 hour period.

Who and When?

The Commercial Vehicle Safety Alliance will hold Roadcheck 2010 on June 8th throughout Canada, the United States, and Mexico. It will be the 23rd international truck and bus safety event of its kind. Each year, approximately 1,500 locations across North America are sites for truck and bus inspections where some 10,000 CVSA-certified local, state, and provincial inspectors look for safety violations. These inspections are held in cooperation with the Federal Motor Carrier Safety Administration, the Pipeline and Hazardous Materials Safety Administration, the Canadian Council of Motor Transport Administrators, Transport Canada, and the Secretariat of Communications and Transportation of Mexico.

Why?

Like past events, this year's Roadcheck will focus on commercial vehicle and driver safety and security, and is very closely aligned with the upcoming efforts regarding the Federal Motor Carrier Safety Administration's CSA 2010, which will monitor individual drivers and carrier companies for Compliance, Safety, and Accountability. Please refer to our previous blog post for more information related to CSA 2010.

These Roadcheck Inspections have been occurring since 1998; the more than 1 million inspections that have been performed to date have been estimated to have saved more that 220 lives and avoided more than 4,045 injuries, according to CVSA. In addition, numerous pieces of educational literature have also been distributed during Roadcheck.

What do Carriers need to do?

All Drivers need to make sure that their logbooks are current and that their equipment is properly maintained with no violations; CVSA will be out in full force and will be checking both!!!

Roadcheck 2010 is a preview of what will come with CSA starting in 2011, so be ready!!