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Fuel rates in Mexico | | |
Increases in the prices of refined products of oil and the exchange rate will push the cost of fuels in Mexico and it is estimated that diesel for example, will achieve an increase of 11 cents and not 8 as happened last year, said Raymundo Tenorio, director of Economics of the business school at the Tecnológico de Monterrey.
"These aspects directly affect truckload operating costs and reduce the profit margin for carriers who are forced to transfer these increases to their customers." "Inflation for this year could reach 4 per cent ", he warned.
View Article (spanish) |
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Contact us through our website, if you are one of our customers we would like to remind you that you can have access to your POD's and Invoices online. | |
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Mexicom's Logistic Comments  |
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Editorial
Dear Customers, business partners and friends.
Starting up with the right foot, we sincerely wish for every one of you to achieve all of your expectations for this 2012, forecasting a very productive year, full of work and opportunities.
Aiming at helping you keep yourself informed about the current state of affairs within the world of transportation in North America, we proudly present to you this first English version of our monthly Newsletter. We hope this information will serve you as a practical tool for the shaping of your critical opinion and the making of important decisions for the benefit of your enterprises.
We are constantly searching for themes of interest concerning the different panoramas and realities of Transportation in Canada, USA and Mexico as to expose a broad information panel. In order to follow up with this labour and make it the most helpful, we invite you to share with us your opinion and comments about the material we present you with, as well as any suggestions for themes of your interest. Good reading!
"Trending Topic"
There is a particularly polemic topic that troubles the transportation sector in the U.S.A. and Canada, generating a lot of controversy and expectation. The FMCSA (Federal Motor Carrier Safety Association) has modified the "Hours Of Service" safety rules. This rule, was originally intended to regulate drivers' operating hours, expecting to prevent accidents caused by fatigue due to overwork.
Hours of Service rule,
-The operator can drive a maximum of 11 hours after a break of 10 consecutive hours.
-The operator cannot drive after having 60/70 hours of work over a period of 7/8 days in a row, shall rest for a period of at least 34 hours of inactivity in order to restart a new active period of other 60/70 hours.
-The working day is 14 hours, which is the maximum time that may report an operator in a normal working day, including 11 driving hours and the time that spent eating, resting or doing maneuvers with a client.
-In adverse driving conditions, the operator can extend his/her 11 driving hours by 2 hours as long as they do not surpass the working time limit of14 hours.
The HOS final rule will be officially applied by July 2013. The broad outlines of its implementation mean fewer legal driving hours over a period of one week. The legal maximum diminishes of 12 hours dropping from 82 hours to 70 hours of driving time. The amendment, in turn, requires that when a driver has exceeded legal driving hours will need to rest for a minimum of two consecutive periods that include from 1am to 5am as part of the 34 hours off-duty to restart the cycle.
The new regulation does not reduce the daily 11-hour driving maximum, but requires that for every 8 hours of driving time a minimum of 30 minutes rest should be taken. Both companies and drivers who commit violations to this regulation will face 'maximum' penalties for each offense.
Several organizations are rejecting these modifications, but so far the FMCSA has not agreed to review the HOS final rule. The modifications to the rule will apply a year from now, however we deem it important to stay informed about any new developments.
We invite you to visit the following links.
Truck driver's guide to Hours of Service
FMCSA News Release
Leon Jorge Medina Ceja
President and General Manager
Mexicom Logistics
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Dissatisfaction with new regulations |
Dissatisfaction with new regulations.
Various groups between manufacturers, retailers and carriers argue that the new regulations not only will affect supply chains, increasing cost for producers and consumers, but will also affect security in highways and urban roadways, crowding traffic in peak hours and increasing pollution levels.
"Rather than encouraging greater efficiency, the new hours-of-service regulations will increase transportation costs, congestion and pollution by funneling more trucks onto the road at peak driving times," said Kelly Kolb, vice president for government relations at the Retail Industry Leaders Association...
"The effect is that down time due to restarts will increase significantly, and many drivers will start driving on Monday mornings, forcing thousands of trucks onto our roadways in rush hour and dramatically increasing traffic congestion," said John Cutler, legal counsel for NASSTRAC...
The American Trucking Association considers taking legal action to block this rule.
View article
Source: SupplyChainBrain
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Cross-border transportation program, a threat to Mexican domestic production. | |
After Transportes Olympic obtained Authorisation to cross beyond the commercial area between Mexico and the U.S., on October 22, 2011, the Mexican government announced the abrogation of the penalty rate on North American imports. This penalty rate was imposed on 99 import (agricultural and industrial) products from the United Sates as a countermeasure to the deficient application of the North American Free Trade Agreement (NAFTA) on the subject of free Cross-border transit. Domestic producers warn that this measure will generate job losses and higher imports of American products.
Since 2003 these penalty rates translated into 2.6 Billion US annually, this did not represent a great advantage for Mexican national production, however the measure was useful as a bargaining chip for Mexican exporters to access the American market and obtain export permits in a faster and more reachable manner.
The abrogation of this penalty will decrease the price of import products, some as much as 20% and will simultaneously represent a great advantage for American exporters and a threat to Mexican domestic production.
View Article (spanish)
Source : http://www.t21.com.mx
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Cass Truckload Linehaul Index
what is it? how can it help me?
Measure of Market Fluctuations in Per-Mile Pricing
As the nation's largest payer of freight bills, Cass manages more than $17 billion annually in freight spend, enabling Cass to compile meaningful logistics data that serves as an indicator of transportation industry trends. The Cass Truckload Linehaul Index™ is a measure of market fluctuations in U.S. domestic per-mile truckload pricing.
December 2011
Truckload carriers continue to command prices that are well above those from a year ago. The data from December has the Cass Truckload Linehaul Index at a value of 109.2, indicating that linehaul rates (independent of accessorials and fuel surcharge) are up year-over-year by 8.6%. The trajectory of the Index reaffirms that capacity remains tight and carriers are being more disciplined regarding pricing and capacity additions in this cycle.
view article
Source: http://www.cassinfo.com
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Freight Cost raises.... while volume? | |
Over the last year, North American freight costs rose at the expense of an increase in rates and not in volume. This tendency is expected to continue this year, due to fuel cost and an increase in labour expenditures, rates will continue to grow while volume levels will grow on a much slower pace. As capacity and drivers shortage continue to affect truckload carriers, a shift to railroad use will increase, railroad rates grow faster than truck rates and so do intermodal load volumes.
View December Report
View Article
Source : SupplyChainbrain
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Trade and Investment from Canada in Mexico
Mexico - Canada Trade
January 2011 / October 2011
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- Mexico increased its trade surplus with Canada by 22.9 % by going from USD$10.6 billion on OCtober 2010 to USD$12.97 billion in 2011
- Mexico ranked as Canada's 3rd largest trade partner in the world, covering 3.8% of the Canadian market, with the Unites States being in the first position with 60% and china in second with 7%
Access Document, bilingual version
Source : http://www.economia.gob.mx/ |
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We hope this Newsletter is of any help for you. Please share with us any concerns, questions or comments. Sincerely,
Jorge Medina Rangel
Mexicom Logistics |
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