Re: Cabotage

OntarioVanMan

Retired Expediter
Owner/Operator
Looks like somewhere along the rules were changed.

A friend of mine from Ontario and with CTX are doing just this.

The following information sheet from the Federal Motor Carrier Safety Administration (FMCSA) covers cabotage rules for Canadian drivers and includes contact information: http://www.highwaystarmagazine.com/cabotage.pdf

An exerpt from FMCSA:

4. Use of Canadian-based Vehicles for Domestic Transportation. Generally, the use of Canadian-based vehicles for domestic movement of merchandise is prohibited. There is one exception. A domestic movement incidental to the immediate prior or subsequent engagement of a vehicle in international transportation is allowed. Incidental is defined as in the general direction of an export move or as part of the return movement to their base country. It includes a movement en route to the pick-up of an export move. For example, a Toronto, ON-based carrier transports merchandise originating in Toronto and
terminating in Miami, FL. The vehicle can then be used to pick up merchandise in Miami for delivery to St Louis, MO (a domestic move) where an export move will be picked up for delivery to Canada. The movement of merchandise from Miami to St Louis is considered incidental to the immediate prior or subsequent engagement of such vehicle in international transportation. The Canadian-based vehicle can also transport a domestic move in the general direction of an export move and then immediately return empty to Canada.

The purpose of this change in cabotage regulations was to allow more efficient and economical utilization of vehicles both domestically and internationally.

That said NOW this is an INS rule:

Purely domestic service (point-to-point within the U.S.) is not permitted.
Solicitation, in competition with U.S. operators, is not permitted. This means that a Canadian-based driver cannot solicit a return load for delivery to Canada while in the U.S. Any return load must be pre-arranged

That would mean that Canadian carriers you see waiting for loads in say Laredo that would not be allowed under the INS version.
 

60MPH

Expert Expediter
wounder if they will let trucks from mexico do the same?? just a smaller piece of the pie for us americans.

60MPH ALL DAY-EVERY DAY
 

OntarioVanMan

Retired Expediter
Owner/Operator
They were pretty specific as to the reference of Canadian based vehicles. That doesn't mean they can't order up a Mexican version using their logic.
So who rules by Fmsca were are dead ducks while the INS rules says NO way.
 

redytrk

Veteran Expediter
Charter Member
A poster on OOIDA`s Forum said he was in the process of signing on with a Canadian company. When he told them he planned to follow the rules of Cabotage,he was told "WE DON`T NEED YOU".
 

OntarioVanMan

Retired Expediter
Owner/Operator
>A poster on OOIDA`s Forum said he was in the process of
>signing on with a Canadian company. When he told them he
>planned to follow the rules of Cabotage,he was told "WE
>DON`T NEED YOU".


Meaning? That carrier wasn't planning on doing inter U.S. and going by the old rules?

My friend/driver says CTX is doing inter U.S. He did a load Kentucky to Chicago and picked up another Chicago to Canada.
 

RobA

Veteran Expediter
Charter Member
Happy Thanksgiving!
OVM; I don't believe this is anything really new, the NAFTA laws say the vehicle can haul an incedental(sp?) load on the way back to the country of registration but the US INS rules say theDRIVER can't. That's been the basic rule all along to the best of my understanding.
American drivers have the same rights up here in Canada. Our own Rich M once hauled a load to Nova Scotia from Ontario as the incedental move.
Regulations are often clarified and republished.

If you have a Canadian friend who is "interstating" I hope he has another career in the background. The DOT/INS will likely catch these things in a POST-AUDIT at some point in future.
 

OntarioVanMan

Retired Expediter
Owner/Operator
RobA...The below example could be constured as interstating? Yes No

For example, a Toronto, ON-based carrier transports merchandise originating in Toronto and terminating in Miami, FL. The vehicle can then be used to pick up merchandise in Miami for delivery to St Louis, MO (a domestic move) where an export move will be picked up for delivery to Canada. The movement of merchandise from Miami to St Louis is considered incidental to the immediate prior or subsequent engagement of such vehicle in international transportation.

One agency says you can FMCSA and another says you can't INS. So which one if any supercedes the other?
 

RobA

Veteran Expediter
Charter Member
>
>One agency says you can FMCSA and another says you can't
>INS. So which one if any supercedes the other?

This becomes a matter of personal decision at this point Ken. I would say from a Canadian DRIVER'S perspective the INS would take precedence. It is the INS that decides whether the driver can in fact enter the USA to ply his/her trade. As I'm sure you will agree; a driver from Canada who cannot enter the USA will have a very unlucrative career. There are very few driving jobs that don't involve entering the USA.
So, the driver must make a judgement...do I move this load that "should" be legal and risk being forbidden entry to the USA; or do I refuse to move the load and risk losing my job.
Then it almost becomes a matter of ethics for the carrier; should they dispatch a driver on a run that will risk that driver's career?
This is really why lawyers were invented wasn't it?
Someone should take the issue to court and have the order of precedence established so everyone knows.
 
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