Thursday, January 18, 2018

NAFTA freight value decreases for 19 straight months; July down 10 percent


Tuesday, September 27, 2016
by THE TRUCKER NEWS SERVICES

From July 2015 to July 2016, the value of U.S.-Mexico freight declined 9.2 percent to $41.3 billion as all modes of transportation except rail carried a lower value of U.S.-Mexico freight than a year earlier. (The Trucker file photo)
From July 2015 to July 2016, the value of U.S.-Mexico freight declined 9.2 percent to $41.3 billion as all modes of transportation except rail carried a lower value of U.S.-Mexico freight than a year earlier. (The Trucker file photo)

WASHINGTON — July cross-border freight decreased 10 percent in value from the same month last year to $83.7 billion, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported September 22. All transportation modes except rail carried less cross-border freight by value. The $83.7 billion in July 2016 cross-border freight is the lowest monthly amount since February 2011, according to BTS. July was the 19th consecutive month that the total value of U.S. freight with North American Free Trade Agreement (NAFTA) partners Canada and Mexico declined from the same month of the previous year.

The value of commodities moving by rail increased 0.9 percent while the value of freight carried on other modes decreased: air by 6.4 percent; truck by 8.8 percent; vessel by 25.1 percent; and pipeline by 26.9 percent. The increase in rail is due in part to a 14 percent year-over-year increase in the value of vehicles and parts traded with Mexico, BTS reported. A drop in the price of crude oil played a role in the large declines in the dollar value of products shipped by vessel and pipeline. Crude oil (a component of mineral fuels) comprises a large share of the commodities carried by these modes.

Trucks carried 64.7 percent of U.S.-NAFTA freight and continued to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks accounted for $27.8 billion or 62.4 percent of imports and $26.4 billion or 67.4 percent of exports.

Rail remained the second largest mode by value, moving 15.4 percent of all U.S.-NAFTA freight, followed by vessel, 6.1 percent; pipeline, 4.9 percent; and air, 4.0 percent. The surface transportation modes of truck, rail and pipeline carried 85.0 percent of the total value of U.S.-NAFTA freight flows.

From July 2015 to July 2016, the value of U.S.-Canada freight flows fell 10.7 percent to $42.4 billion as all modes of transportation carried a lower value of U.S.-Canada freight than a year earlier.

Trucks carried 59.7 percent of the value of the freight to and from Canada. Rail carried 15.7 percent followed by pipeline, 8.8 percent; air, 5.0 percent; and vessel, 3.7 percent. The surface transportation modes of truck, rail and pipeline carried 84.3 percent of the value of total U.S.-Canada freight flows.

From July 2015 to July 2016, the value of U.S.-Mexico freight declined 9.2 percent to $41.3 billion as all modes of transportation except rail carried a lower value of U.S.-Mexico freight than a year earlier. Freight carried by rail increased 4.2 percent. Air decreased 8.2 percent and truck decreased by 10.1 percent. Pipeline freight dropped 12.3 percent while vessel freight value dropped 18.2 percent.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

Video Sponsors