Supply Chain Digest Says...
|
 |
| Cabotage is the term given to the transportation of goods or passengers between two places in the same country by a transport operator from another country. |
 |
What do you say? |
| Click here to send us your comments |
 |
| |
|
American Trucking Associations Chief Economist Bob Costello told attendees last week at the Truckload Carriers Associations’ Truckload 2025 conference that he was watching two key issues: a proposal from the Trump administration to place heavy fees on container ships made in China entering US ports, and actions against so-called “cabotage,” with Mexican truckers illegally hauling freight north of the border.
SCDigest has recently reported on the issue of a possible fee on Chinese-made ships a couple of times, a potential move designed to help the moribund US ship making sector, which is now dominated by Chinese manufacturers. (See Trump Considering Executive Order Aimed at Reversing China’s Shipbuilding Might, Revive US Prowess.)
On the issue, Costello told the conference that about a year ago, five labor unions filed a complaint with the United States Trade Representative that China was dumping cargo ships into the global market.
Under the potential plan, Costello said any carrier that wants to use US ports – Chinese carriers or non-Chinese vessel operators sailing a Chinese-made ship – would be hit with a new fee of between tween $1 million and $3 million – a huge number.
As aSCDigest note in previous coverage of this potential policy, this change carriers would almost certainly reduce or eliminate multi-port voyages, with carriers instead unloading all their containers at one stop and letting trucks or rail get them nearer the final customer.
“What they’re probably going to do is dump all of the cargo in one port and move on,” Costello said, as reported by Transport Topics. Costello added that the proposal, if enacted, would almost certainly push carriers to bypass smaller ports — especially along the East Coast.
“If this goes through, it will absolutely change freight patterns in the US,” Costello told the conference, adding that the ATA is following this matter closely.
(See More Below)
 Costello also addressed the less well-known issue of so-called “cabotage,” in which Mexican truck drivers legally haul a load from Mexico into the US, but then illegally move more freight within the country before eventually returning to Mexico.
Cabotage is the term given to the transportation of goods or passengers between two places in the same country by a transport operator from another country.
That practice has served to increase US truckload capacity when otherwise it would have been shrinking, Costello told the crowd.
“It’s another reason why the market has been bad,” Costello stated.
He further said that a Customs and Border Protection official at the Port of Laredo recently told him that US fleets are often using Mexican drivers.
He added that the ATA is working with the Department of Homeland Security to crack down on the unlawful activity.
Any thoughts on Costellow's comments? Let us know your thoughts at the Feedback section below.
|
