While survival of the federal pork for local transportation
infrastructure improvements remains in limbo in House-Senate
conference committee, there appears to be no doubt the Supreme
Court will hear oral argument next Thursday.
Dear Editor:
While survival of the federal pork for local transportation infrastructure improvements remains in limbo in House-Senate conference committee, there appears to be no doubt the Supreme Court will hear oral argument next Thursday, and in due course I believe that we will see the last barrier come down, opening up the Mexican border to Mexican motor carriers just as the Canadians did after NAFTA was approved by the three trading partners.
One overlooked aspect of Mexican carriers having unrestricted access to serve American shippers and receivers deserves closer examination. Tonnage originating in Mexico will no longer be governed by the Interstate Commerce ACT, which has been the case for more than 100 years.
Instead, NAFTA’s provisions will overrule federal transportation law. The practical result for our shippers and receivers is that they will not have the right to recover “full actual loss” on freight loss and damage claims.
Instead of invoice value at destination, the new (NAFTA) measure of damages will be about 2 cents/dollar because Mexico’s law will apply, regardless of where the loss occurs.
State and federal courts in the U.S. must apply the law of the origin country in deciding freight loss and damage cases. Many adverse effects will result from the entry of Mexican Motor carriers, whose equipment average 3 to 4 times the age of the American trucking fleet, and whose drivers are paid a small fraction of what we pay our truckers.
However, shippers and receivers, and those with beneficial ownership of freight originating in Mexico, better start seeking cargo insurance policies because relying on your carrier to pay your claim will soon be just a memory of time long gone.
Caveat viator.
Joseph P. Thompson,
Tres Pinos
