DRIVER CLASSIFICATION RISKS
LACK OF FACILITIES ON BOTH SIDES OF THE BORDER
B-1 visa drivers are authorized to transport loads across the border and deliver them to their destination in the U.S. They may also pick up a load in the U.S. and return it across the border to their home country. The intent is for B-1 drivers to provide door-to-door service from Mexico to the U.S. (or vice versa). However, bottom-dollar carriers may attempt to circumvent the rules by having B-1 drivers transport a load to a border point, such as Laredo or San Antonio, rather than actually moving it across the border. Since both points are within the U.S., this is considered cabotage and doesn’t fall within the terms of the B-1 visa. Since B-1 visa drivers entering from Mexico are cheaper, this helps carriers cut costs.
Many carriers don’t have their own assets on either side of the border, so they must rely on third-party agreements, which adds unnecessary complexity to the supply chain, drives up costs that are passed on to the shipper and creates more risk by introducing additional touchpoints for shipments. Having warehouses, cross-docks and drop lots on both sides of the border helps carriers and logistics providers minimize the impact of many issues that cause delays and border congestion. “Some people are dealing with four or five vendors. Why do that when you can just deal with one? A northbound LTL load clears customs when leaving Mexico, so there’s no need for a shipment to touch a third-party warehouse. The Mexican drayage driver can bring it directly to our warehouse, where we cross-dock it and send it on. Something that simple can shave off a couple of days.” ED HABE Vice President of Mexico Sales for Averitt
These issues are further complicated by evolving rules around English Language Proficiency (ELP) for drivers operating in the United States.
“Some Mexican carriers are having to park trailers because they don’t have enough ELP-qualified drivers to put on the road. Based on the enforcement so far, Mexican-based carriers operating in the U.S. are actually hiring U.S. drivers in place of B1 drivers.” ED HABE Vice President of Mexico Sales for Averitt
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