Since it looks like Mexican truck drivers will be allowed to drive in the US on Saturday, what will be the economic consequences if US employers hire Mexican truck drivers?

Sorry for odd worded title.

Since it looks like Mexican truck drivers will be allowed to drive in the US on Saturday, what will be the economic consequences if US employers hire Mexican truck drivers?

I'm not sure what you're asking; many US trucking carriers already hire lots of immigrants from Mexico (illegal and otherwise). The effect of the new deal is that instead of stopping all shipping that crosses the border (in both directions), unloading everything, then loading them onto domestic trucks for the remaining shipping, the trucks will simply drive through a checkpoint and proceed to deliver the stuff directly (again, in both directions). The result of removing the extra stage of transhipment will be cheaper, faster shipping throughout Mexico and the US, which translates into cheaper goods for everyone.

It's difficult to predict the effects on trucking employment. Since carriers on both sides of the border will be able to ship throughout both countries, it will depend on relative labor costs, tax incentives and management efficiency. It's tempting to think that the Mexican carriers will predominate due to lower labor costs, but that may not be the case. Anyway, it's only 100 carriers to start with, so the effects on employment in the initial phase will be small.

If some of those 100 carriers happen to be Swift, Walmart, and Warner the effects might be like we have now in the construction and restaurant industries.

These Mexican truckers are paid a small fraction of what American truckers make. Beyond any effect on the trucking industry, what will be the security implications of this bill? Are all of these trucks going to be searched? What's to stop these underpaid Mexican truckers (I heard they make that $25 for the whole trip) from taking money from drug dealers and/or terrorists and shipping up drugs/WMDS etc literally by the truckload? This is idiotic.

madanthonywayne These Mexican truckers are paid a small fraction of what American truckers make. Beyond any effect on the trucking industry, what will be the security implications of this bill? Are all of these trucks going to be searched? What's to stop these underpaid Mexican truckers (I heard they make that $25 for the whole trip) from taking money from drug dealers and/or terrorists and shipping up drugs/WMDS etc literally by the truckload? This is idiotic.

As I understand it.. There is a shortage of qualified Line haul drivers in America.

Many drivers from here have been lured to drive in America with high wages..

As I understand it.. There is a shortage of qualified Line haul drivers in America.

Many drivers from here have been lured to drive in America with high wages..
So long as they meet whatever requirements we have for truckers, no problem. My concern is uninspected truckloads of who knows what flowing into the US. How can Bush claim to be serious about the war on terror when he allows this?

[QUOTE=adam2314;1527387]
As I understand it.. There is a shortage of qualified Line haul drivers in America.
[QUOTE]

Small corrections: there is a perceived shortage of qualified line haul drivers willing to work for the prevailing wages. There is no shortage of drivers per se. Each 3 weeks truck driving schools push out tens of thousands of graduates. There are millions of them. Drivers are paid by the mile. Whatever TV tells you, freight volume is going down (recession knocking the door?). The average paid miles (yeah, companies cheat on miles) in trucking - 2800/week. The average pay, I doubt it's so high, but let it will be 35cents/mile.

Let's see: 2800x0.35=$980 for SEVEN days of work, minus taxes= $700. $700x4=$2800/month + living conditions + stress +loneliness + HUGE legal problems in case of an accident with possibility of prison time. Do the math. Would you do it? So I've thought. An average turnover in trucking is something like 115%/year.

As for Mexican bringing in drugs, A bombs, etc., Sorry but Mexican drivers are allowed in 25 mile border zone for at least 10 years already. The major truck hubs are El Paso, TX, Laredo, TX, Calexico, CA. Mexican drivers bring Mexican made goods (in American trailers) to those cities to be picked up by American drivers. American drivers bring mostly empty trailers + raw materials and equipment for the newly constructed mexican plants. Quite a trade.

Let's see: 2800x0.35=$980 for SEVEN days of work, minus taxes= $700. $700x4=$2800/month + living conditions + stress +loneliness + HUGE legal problems in case of an accident with possibility of prison time. Do the math. Would you do it? So I've thought. An average turnover in trucking is something like 115%/year.
Here's the salary range I came up with:
Local companies usually pay by the hour, but long-haul company drivers are salaried with bonuses and other variables such as mileage and experience. First-year long-haul company drivers, considered entry-level student drivers, can earn $30,000 to $45,000. With a year or two under their belts, they earn the title of experienced driver and can negotiate pay. Salaries for experienced drivers can range from $40,000 to more than $100,000. http://www.jobjournal.com/article_full_text.asp?artid=358

Here's the salary range I came up with:

115% turnover rate means that rare truckdriving wannabe will reach 2 years, after tasting the trade. Average career "length" is something like 7 months i.e. most of the companies making money on turnover of fresh&cheap drivers while lobbying congress for letting in even cheaper ones.