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In recent years, US companies establish operations in Mexico to hire drivers with B-1 visas
In recent years, a phenomenon has been observed in the transportation industry, driven by irregular practices by fleet managers. US companies establish operations in Mexico to hire drivers with B-1 visas, paying them less than their American counterparts. Industry stakeholders have denounced this practice as unfair to American truckers.
This situation arises because B-1 visa drivers can legally pick up loads in border cities and transport them to the US. However, this creates unfair competition that impacts local carriers in the US. Additionally, this practice violates cabotage regulations, as most Mexican carriers lack the necessary documentation to work in the US, aside from the B-1 visa.
B-1 visa drivers are commonly hired by companies to pick up new loads and venture further into US territory, often accepting lower-paying jobs. According to reports by FreightWaves, carriers with operations in Mexico sometimes display both US and Mexican license plates on vehicles, allowing them to alternate between American and Mexican drivers.
A 2019 Teamsters study revealed that the irregular employment of B-1 visa drivers has become widespread in Nuevo Laredo over the past two decades. Conducted by Empower LLC, the report indicates that large B-1 fleets emerged in the region in the 2000s and have grown since then. Although the study focused on Laredo and Nuevo Laredo, similar practices have been documented in other cities along the borders with Mexico and Canada. FreightWaves has also reported that this practice has become common in the Permian Basin in western Texas.
Shortage of truckers in Mexico as a result of cabotage non-compliance
Cross-border trade operators point out that cabotage non-compliance not only affects the American transportation industry but also the freight transportation sector in Mexico. According to Gerardo Alanis Barrios, CEO of Cold Chain Solutions in Laredo, companies in Mexico face challenges in maintaining and retaining drivers, as many of the best truckers with B-1 visas find work in the US due to higher salaries. The average salary for truckers in Mexico in 2022 was around $4,400, while in the US, according to the American Trucking Associations, the average salary for a freight truck driver exceeded $69,000 in 2021.
In addition to salary, safety is an important factor that attracts Mexicans with B-1 visas to work in the US. Truckers in Mexico face difficult working conditions and security issues, with an increase in cargo theft and violence on roads, according to data from Mexico’s National Public Security System and the National Chamber of Freight Transport (Canacar). Alanis Barrios emphasizes the need to dignify the trucking profession in Mexico and improve infrastructure for drivers, such as truck stops and places to rest and eat, aspects that are better developed in the US.
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