🔒 Cabotage Crackdown Could Shake Up U.S. Trucking—Higher Rates, Leaner Capacity

by TRUCKERS VA
(UNITED STATES)

Introduction

If you’ve ever wondered why freight rates are stuck in a rut—or why small carriers are suddenly going under—the emerging cabotage crackdown might be the reason. Major logistics players like Schneider and J.B. Hunt are actually cheering it on, warning that stricter enforcement of B‑1 visa rules could rebalance supply, boost rates—and maybe even save smaller fleets. Let’s dive into the real-world implications of turning the screws on foreign drivers hauling U.S. domestic loads.

What Exactly Is Cabotage—and Why Now?

Cabotage laws exist to keep U.S. domestic freight in the hands of U.S. drivers and carriers. But over the past few years, some companies have used B‑1 “tourist-business” visas as loopholes—bringing in foreign drivers (mostly Mexican and Canadian) who drop cross-border loads and then run U.S. domestic hauls illegally :contentReferenceoaicite:2{index=2}.
ATA chief economist Bob Costello warned this is dragging down rates. In Mexico, drivers earn 4-6× U.S. wages, giving these carriers a pricing edge—and allowing them to undercut honest players
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🚛 What Schneider & J.B. Hunt Are Saying

At the Wells Fargo conference, Schneider’s CEO Mark Rourke celebrated increased enforcement on cabotage, saying, > “Just the fact that the border started to do some more questioning and more enforcement stopped the proliferation… which means a little tightening of capacity, particularly around the border.” :contentReferenceoaicite:5{index=5}
J.B. Hunt’s COO, Nick Hobbs, echoed the sentiment:

“There’s a lot of noise … I think that’s a really big play on where cheap rates are coming from.”
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In plain speak? If illegals are cut out, capacity tightens. And when capacity tightens, freight rates climb. That’s math every carrier understands.

🧩 Small Fleets Feel the Pain

A FleetOwner story spotlighted South Texas owner-operators who were pushed out entirely—literally watching their customers go to B‑1-covered carriers offering dumpster-low rates :contentReferenceoaicite:10{index=10}. :contentReferenceoaicite:11{index=11} > :contentReferenceoaicite:12{index=12} :contentReferenceoaicite:13{index=13}
That’s not theory—that’s a small business crushed under unfair competition.

🔄 Load-Bearing Impact: Supply Meets Demand

Economically, when shirttail-capacity gets cut, rates go up. Hobbs says there's optimism that supply and demand are nearing a “balancing point” :contentReferenceoaicite:15{index=15}. :contentReferenceoaicite:16{index=16}
Costello believes a crackdown would shrink capacity and “cut down on capacity,” which helps carriers regain pricing power
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📜 Enforcement: Is It Actually Happening?

For years, enforcement’s been spotty. CBP and ICE have historically focused more on immigration than trucking compliance. But that’s starting to change. CBP statements confirm ongoing outreach, and the DOT’s new English-proficiency crackdowns are pushing inspectors to more closely question visa status—especially at weigh stations :contentReferenceoaicite:19{index=19}.
IT agencies can revoke visas, seize equipment, and fine carriers—so this isn’t a slap on the wrist. And in Arizona, past enforcement led to convictions and heavy penalties
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⚖️ Multiple Perspectives

**Major carriers** (Schneider, J.B. Hunt): Ready for capacity tightening and price normalization. **ATA**: Pushing federal cooperation between FMCSA, DHS, CBP, and ICE to enforce cabotage laws :contentReferenceoaicite:22{index=22}. **Small carrier owners**: Relief, potentially seeing a lifeline to stay afloat. **Drivers**: Concern for turnover and enforcement logistics—but improved rates and compliance could benefit U.S. drivers overall. **Border region stakeholders**: Mixed. Some worry about enforcement spikes, others welcome leveling the playing field.

📈 What Comes Next?

- Frequent inspections and English-proficiency checkpoints at weigh stations - Federal agencies coordinating enforcement - Possible media coverage fueling pressure - Carriers caught are likely to face fines, seizures, and loss of operating authority—and enforcement could come cheaper and faster than expected
If it heats up, interstate lanes in the Southwest and Southeast will feel it first. But as Rourke said, even threats work to rebalance.

Bottom Line

A true cabotage crackdown would remove scrap tire lowball tonnage from the market, boost freight rates, save honest carriers, and stabilize the industry. Will it happen quickly? Or be bureaucratic halting? If enforcement finds teeth, carriers that play by the rules stand to gain—and the freeloading B‑1 operations may finally get shut down.
Call to Action
✔️ If you're a small fleet or O/O: track local border enforcement activity and start conversations with state reps.
✔️ For content creators: spotlight impacted fleets, explain cabotage laws, and share case studies.
✔️ For drivers: stay sharp on English-language responsibilities and document any questionable loads or directives.