FMCSA (Federal Motor Carrier Safety Administration)

According to a recent article from Overdrive, the Federal Motor Carrier Safety Administration has lifted a restriction that prevented Mexican carriers from leasing vehicles to U.S. carriers for use in hauling freight inside the United States. This restriction was part of the Motor Carrier Safety Improvement Act of 1999, and was to remain in place until trade agreement goals were accomplished, the article stated.

The FMCSA announced the lifting of the Mexico carrier restriction via a November 22 notice in the Federal Register. Carriers domiciled in Mexico can now lease equipment to U.S. motor carriers without restriction on where the freight is going, so long as the equipment meets FMCSA standards. The U.S.-based carrier will be responsible for operation of the equipment for the duration of the lease, the article added.

According to a previous Overdrive article, published in January, 2015, the FMCSA conducted a three-year cross-border pilot program from 2011 to 2014 and determined that it had enough information to allow Mexico carriers to apply for U.S. operating authority. Overdrive reported that initial reader response to the program was negative, with concerns being expressed that the decision would harm U.S. business opportunities along the border with lower rates coming from Mexico. However, Canadian haulers pointed out that Mexican carriers would still be required to comply with U.S. trucking regulations, which should prevent any great impact on rates.

The FMCSA conducted over 5,500 inspections during the three-year pilot program and collected inspection data from 952 Mexican carriers. Initially, the FMCSA had stated that it needed between 36-41 carriers to participate in the program. However, with 15 carriers participating, the agency stated that it could gather enough evidence to support its decision.