While you may have never heard the word “cabotage” before, some drivers believe it could be impacting their bottom line.
During a recent episode of Land Line Now, Tom Crowley and Aron Lynch with the Owner-Operator Independent Driver Association’s Compliance Department joined the show to explain what exactly cabotage is and why some drivers fear it could be affecting their business.
Cabotage laws restrict motor carriers based in Mexico and Canada who are operating in the United States from transporting point-to-point within the U.S. They are allowed to deliver a load from Mexico or Canada to multiple locations in the United States and they are allowed to receive a return load to their country of origin.
Cabotage is the pick up of a shipment from one U.S. location to another U.S. location, commonly referred to as point-to-point deliveries, by non-U.S. based motor carriers. Motor carriers from Canada and Mexico are also prohibited from repositioning empty trailers, filling out a partial international loads with domestic freight or solicit shipments of domestic deliveries when in the U.S.
Lynch added that the purpose of cabotage laws is to prohibit non-U.S. based motor carriers from coming in and taking work from U.S. motor carriers – something he said is a real concern among the members he hears from.
“That’s the outcry from some of our callers,” Lynch said. “The assumption – and sometimes it’s dangerous to assume – but the assumption is that drivers from Canada or Mexico are potentially doing point-to-point, and they’re doing it for months at a time, which is driving the rates down.”
While Lynch said it is difficult to prove those potential violations and the impacts, there is a way for drivers to report suspected cabotage. You can do so through the Customs and Border Protection tip line online or by calling 800-232-5378. You can also go to the Immigration and Customs Enforcement tip line online or call 866-347-2423.
For drivers violating cabotage laws, fines can reach up to tens of thousands of dollars – but both Crowley and Lynch admitted that enforcement is rare.
“I have never seen enforcement,” Crowley said. “I’ve never even heard of enforcement.”
Related, Oklahoma adopted legislation intended to help curtail improperly credentialed non-domiciled CDL holders from operating in the state..
Signed into law by Gov. Kevin Stitt on Wednesday, May 28, SB20 prohibits non-domiciled commercial drivers from operating in Oklahoma if they do not possess a valid work visa. Drivers must also meet identification requirements – including presenting proof of citizenship documents from the country that issued their commercial driver’s license, such as a birth certificate, valid passport or naturalization certificate.
Non-domiciled drivers who violate the new law could face a misdemeanor charge, up to 90 days in jail and a $3,000 fine. LL
Credit: Source link
