Cabotage: Protecting American Trucking Jobs From The B-1 Visa

In this post we’ll talk about cabotage and the use of the B-1 Visa to take American trucking jobs. This is being reported as happening all over America, but mainly near the U.S. southern border, usually Laredo, TX. Cabotage was originally put in place to protect the American trucker but from what’s being reported more and more, it’s having the opposite effect. American truckers aren’t going to Mexico or Canada and breaking rules because both the Mexican and Canadian freight markets pay considerably less than the U.S. freight markets. The currency exchange rate is driving these truckers to cross the border and break the rules that ultimately hurts the American economy, the American consumer, and the American trucker.

At AFT Dispatch, we understand the challenges facing small trucking companies and owner-operators in today’s competitive market. One issue that can significantly impact your bottom line is cabotage. This article will explain what cabotage is, how it relates to B-1 visas, and why it’s important for the American trucking industry. We’ll also provide clear and concise information to help you stay compliant with regulations and protect your business.

What is Cabotage?

Cabotage refers to the laws that restrict the transportation of goods within a country’s borders to vessels or vehicles flagged by that country. In simpler terms, cabotage laws ensure that domestic freight hauling is done by American trucking companies and American truck drivers.

These laws exist to protect American jobs and the trucking industry, which is a critical part of the U.S. economy. The American Trucking Associations (ATA) estimates that the trucking industry employs over 7.2 million people and contributes trillions of dollars to the U.S. GDP annually.

How Do B-1 Visas Relate to Cabotage?

B-1 visas are temporary business visitor visas. They allow foreign nationals to enter the United States for short-term business activities, such as attending conferences or negotiating contracts.

However, B-1 visas do not authorize holders to take jobs away from American citizens. This includes working as a truck driver for domestic freight transportation within the U.S.

Unfortunately, there have been instances where some trucking companies have misused the B-1 visa system. They might hire Mexican drivers with B-1 visas to haul goods within the U.S. This is a violation of cabotage laws and can have serious consequences for both the trucking company and the driver.

Why is Cabotage Enforcement Important?

There are several reasons why enforcing cabotage laws is crucial for the American trucking industry:

• Protects American Jobs: When foreign nationals with B-1 visas are allowed to haul domestic freight, it takes away opportunities for American truck drivers. This can lead to lower wages and job insecurity for U.S. citizens in the trucking industry.

• Maintains a Level Playing Field: Cabotage laws ensure fair competition within the trucking industry. U.S. trucking companies operating legally face higher costs due to factors like driver wages, safety regulations, and equipment maintenance. If foreign companies can undercut these costs by using B-1 visa drivers, it creates an unfair advantage.

• Ensures Safety and Security: U.S. Department of Transportation (DOT) regulations ensure that American truck drivers are properly trained, licensed, and insured. When foreign nationals with potentially different licensing and safety procedures operate within the U.S., it can raise safety concerns on the road.

Interesting Statistics About Cabotage Violations

A 2019 study commissioned by the Teamsters, a labor union representing truck drivers in the U.S., found that the misuse of B-1 visa drivers may be more widespread than previously thought. The study focused on Laredo, Texas, a major trade hub on the U.S.-Mexico border. Here are some key findings:

• The practice of using B-1 visa drivers for domestic freight hauling allegedly began in Nuevo Laredo, Mexico, in the mid-2000s.
• Since then, the number of B-1 driver fleets and outsourcing arrangements has significantly grown.
• While obtaining precise data is difficult, the study suggests that thousands of B-1 visa drivers might be working illegally in the U.S. trucking industry.

These statistics highlight the potential impact of cabotage violations on the American trucking industry.

In the next part of this article will delve deeper into the consequences of cabotage violations, how to identify potential violations, and resources available to trucking companies to ensure compliance.

In the meantime, if you’re an owner-operator or small trucking company owner looking to maximize your earning potential, AFT Dispatch can help. Our experienced dispatchers can connect you with high-paying loads and negotiate the best rates on your behalf.

Fill out our short form today to learn more about how AFT Dispatch can help your trucking business thrive!

You can also call or text us at (801) 448-6363 to speak with a dispatch specialist. Don’t forget to check out our vast library of free educational trucking videos to stay informed about industry trends and regulations.