A Pyramid of Transportation Resources, A Licensed Property and Certified Transportation Broker, A DBE/WBE Certified Company

Fall 2011
Transportation & Business News

Are Mexican Trucks Coming to the U.S.?

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Some Mexican truckers are already allowed into some commercial zones along the U.S. and Mexico border. The new agreement between the two countries is expected to eventually allow certain Mexican carriers into all of the United States.

The first applicants to successfully complete the Pre-Authorization Safety Audits are Grupo Behr of Tijuana and Transportes Olympic of Monterey, Mexico. Both Trucking companies were successful in the previous cross border program in 2007.

Both the Owner Operators Independent Drivers Association and the Teamsters strongly oppose the agreement. Some reasons for opposition include: U.S. jobs being in jeopardy; cheaper labor sources, safety concerns, along with the scarce availability of low sulfur diesel in Mexico.

When the previous cross border program began in 2007, it was only a couple of years later when the U.S. ended the pilot program in 2009. Mexico responded by raising tariffs on American goods.

The information about Grupo Behr was published in the September 12 Federal Register by the FMCSA. The deadline for public comment is September 22, 2011. On September 12, the FMCSA published the information pertaining to Transporte Olympic and September 26, 2011 is the deadline for public comment on this publishing.

Standard Business Mileage Increase

“This years increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the increase in gas prices,” said IRS Commissioner Doug Shulman in June 2011. “We are taking this step so the reimbursement rate will be fare to taxpayers.”

The rate increased to 55.5 cents per mile for all business miles driven from July 1, 2011 through December 31, 2011. This amount is up 4.5 cents from the 51 cent rate that was effective from January 1, 2011 through June 30, 2011.

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Trucking Rates Are Increasing

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Many trucking companies have already increased their general, standard rates. For any that haven't, prepare for it in the very near future. From all recent reports, the standard increases for Truckload and Less-than-Truckload freight ranges from 5-10%.

Some of the primary reasons for the rate hikes are proposed and enacted regulations and legislations; such as Hours of Service, Electronic On-Board Recording devices, and the CSA implications. Along with these, there is also the current and future decisions of the FMCSA to re-regulate the trucking industry and the continuous escalation of toll and bridge fees.

As an industry, shippers and carriers must understand the issues that affect us all. While it may appear many of the proposals and regulations that are currently on the table in Washington D.C. are only affecting the trucking companies, that is just not the case. Shippers, brokers, 3 PL's, and anyone involved in the transportation business in any capacity must engage with the carrier community in fighting these battles.

This can be done by understanding the effects of the issues mentioned here, communicating these issues to others within your company and educating your peers about the implications of each.

Writing your Senators and Congressman to express your concerns and opinions is an excellent way to be of support. TOGETHER, WE CAN MAKE A DIFFERENCE IN SUPPORTING OUR INDUSTRY!

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Texas Drought Effects Transportation

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The 11 months from October 2010 through August 2011 have been the driest for that 11-month period in Texas since 1895, when the state began keeping rainfall records. This summer in Texas has been the hottest in the country's history, according to the National Weather Service.

Due to the extremely hot and dry conditions earlier this month, wildfires destroyed hundreds of homes, caused home evacuations, and caused significant delays to the service of the Union Pacific Railroad. The wildfires were intensified by the high winds from Tropical Storm Lee.

In a service notice from Union Pacific, “Operations have been intermittently suspended as UP personnel work side by side with local fire departments.” According to UP, engineering crews continue to make repairs and are deploying additional resources, but have also stated, “crews are struggling to make significant progress.”

With the extreme hot and dry weather showing no signs of relenting, this drought could become the worst on record by early spring.

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Highway Use Tax

In July 2011, the IRS gave a 3 month extension to truckers and other owners of heavy highway vehicles on their federal highway use tax return form 2290. This return is normally due each year on August 31, but is due this year on November 30.

According to information obtained from the IRS, last year's received 2290 forms were approximately 650,000 and highway use tax payments totaled more than $886 million.

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Don't Become A Victim of Tax Scams

There is a continuous increase of unscrupulous individuals targeting unsuspecting taxpayers to file claims for tax credits and rebates. The issues with these claims are they are usually false, come with unreasonable filing fees, and/or the taxpayers identity is stolen.

Taxpayers are baited in numerous ways:

  • Social Security Benefits
  • Transferring funds from the Social Security Administrations to the IRS
  • Unknown tax service providers partnering with local churches
  • Offers of free money
  • Refunds for “low income”
  • Economic Income Tax Credit or Recovery Rebate Credit
  • Earned Income Tax Credit

The con artists often prey upon the elderly and low income persons. The promoters of these scams escalate the hopes of the individuals. When all is said and done, the taxpayer is left with a refund that scarcely exceeds the amount paid to the con artist for their service, or their claim is rejected all together. And?????? You guessed it—the fraudulent providers are no where to be found.

For additional information, please visit www.irs.gov or call 800-829-1040.

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What is Phishing?

Microsoft defines phishing as a type of online identity theft. It uses e-mail and fraudulent websites that are designed to steal your personal data or information, such as credit card numbers, passwords, account data, or other information.

Con artists might send millions of fraudulent e-mail messages with links to fraudulent websites that appear to come from websites you trust, such as bank or credit card companies, and request you provide personal information. Criminals can use this information for many different types of fraud, such as to steal money from your account, to open new accounts in your name, or to obtain official documents using your identity.

Both the IRS and Federal Motor Carrier Safety Administration have received numerous reports of phishing e-mails from fraudulent e-mail accounts. The goal of the senders of these e-mails is to get the reader to click on an embedded link within the e-mail or to open up an attachment which can compromise personal and government data and systems.

ALWAYS BE EXTREMELY CAUTIOUS WHEN RECEIVING UNSOLICITED EMAILS, AS THEY CAN BE PART OF A PHISHING SCAM!

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Take A Smile Break

THE LORD IS MY SHEPHERD

Happy Face

A Sunday School teacher decided to have her young class memorize one of the most quoted passages in the Bible—Psalm 23. She gave the youngsters a month to learn the chapter.

Little Rick was excited about the task—but he just couldn't remember the Psalm. After much practice, he could barely get past the first line.

On the day that the kids were scheduled to recite Psalm 23 in front of the congregation, Ricky was so nervous. When it was his turn, he stepped up to the microphone and said proudly, “The Lord is my Shepherd, and that's all I need to know.”

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MCD Transportation, Inc

MCD Transportation, Inc. acts as an extension of your company's logistics management program. Our professionals can assist you with a network of reliable carriers nationwide to handle your truckload, volume LTL, expedited shipments, intermodal and air shipments in the United States, Canada and Mexico.

MCD can also provide a range of trucks such as vans, reefers, flatbeds, specialized and hot shots. We secure only qualified carriers with proven service capabilities at competitive and economic pricing levels.

MCD'S MISSION STATEMENT

“To provide our customers with dependable transportation services based on fair and competitive pricing programs with an emphasis on customer service for all concerned parties; to be receptive to customer's needs and react in a professional and timely manner; and to recognize customers, carriers, and vendors as our only asset for continued success.”

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Verifying Carrier's Insurance

  • Have the insurance company or agent provide the certificate of insurance—accepting only the carrier's certificate is not advised
  • Check the reputation of the insurance company—be sure the insurance company has a good reputation and has a high rating from A.M. Best
  • Confirm coverage amounts—verify the policy limits are in compliance with your requirements
  • Confirm that the policy is enforce at the time of shipping
  • Confirm any limitations or exclusions to the policy that may apply—many times, limitations and exclusions ARE NOT listed on the certificate of insurance

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A special thank you to all of our Customers and Carriers for your continued support as MCD celebrates 25 years in business. You are greatly appreciated!