Gerry Reed, a small trucking company owner from South Texas, shared his struggle to stay in business against other carriers who are using Mexico-based B-1 visa drivers improperly to deliver loads within the U.S.

Cabotage rules are there to stop foreign nationals on B-1 business-visitor visas from competing with American truckers on U.S. routes. These rules aim to protect American truckers’ jobs.

Reed said that the problem of misusing B-1 visa drivers has gotten worse.

He explained that some U.S. companies are even setting up operations in Mexico to hire B-1 visa drivers and use them to drive in the U.S.

Here’s how it works: A B-1 visa driver from Mexico can pick up a load in a Mexican city like Nuevo Laredo, which is across the border from Laredo, Texas. It’s legal for them to bring that load into the U.S. Then, they can either go back to Mexico or pick up another load heading back to Nuevo Laredo.

But instead of going back to Mexico, these drivers are often hired by companies to pick up new loads and travel farther into the U.S., sometimes for less pay, which is against the law.

Reed said that some carriers with operations in Mexico put both U.S. and Mexican license plates on their trucks so they can use either a U.S. or Mexican driver.

He added that this practice of using B-1 visa drivers drives down rates. For example, loads from South Carolina to Texas or Georgia to Texas are priced very low, around 90 cents to $1 per mile, by carriers using B-1 visa drivers. This affects everyone else in the industry who may not understand why rates are so low.

Cabotage violations have been happening for many years. While it’s hard to know exactly how many carriers are involved in misusing B-1 visa drivers, a 2019 study by the Teamsters found that the practice became common in Nuevo Laredo about 20 years ago.

The study also found that the number of carriers and setups misusing B-1 visa drivers has increased over time.

While the Teamsters study focused on Laredo and Nuevo Laredo, similar misuse of B-1 visa drivers has been reported in other cities along both the Mexican and Canadian borders.

Truckers in Mexico face challenges too, including low wages and safety concerns. Many of the best truck drivers with B-1 visas leave Mexico to work in the U.S. because American companies pay more.

Gerardo Alanis Barrios, CEO of Cold Chain Solutions in Laredo, said that his company and others in Mexico struggle to find and keep drivers because they can make more money in the U.S.

Alanis Barrios and his family operate a group of companies in Laredo and Nuevo Laredo, including transportation and logistics.

He explained that the shortage of drivers in Mexico is partly due to B-1 visa drivers leaving for better pay in the U.S.

In Mexico, truck driver salaries are much lower than in the U.S., and drivers often face safety issues while transporting goods.

Alanis Barrios said that the trucking industry in Mexico needs to improve safety and working conditions to attract and retain drivers. He also emphasized the need for better infrastructure, including more truck stops and rest areas, to support drivers on the road.