The total value of cross-border freight between the United States and North American trading partners Canada and Mexico slipped another 6.4 percent year-over-year in June 2016, according to the Bureau of Transportation Statistics.
The total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA) Canada and Mexico declined for the 18th consecutive month in June 2016.
NAFTA freight value for the month fell 6.4 percent to $92.7 billion compared with June 2016 after slipping 3.1 percent year-over-year in May, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). BTS noted total cross-border trade values have now fallen in each of the last 18 months compared with the same month the previous year.
Of the five major transportation modes measured by the BTS, only airfreight carriers moved more freight by value in June, increasing 5 percent thanks primarily to a 35.6 percent jump in imports of pearls, precious stones and metals. A 16.6 percent increase in the value of incoming airfreight from Mexico and Canada outweighed a 2.7 decrease in outgoing shipments from the U.S.
Air remained the least utilized mode, however, carrying just 4 percent of total U.S.-NAFTA freight.
The value of cargo moving by all other modes dropped, with commodities moving by truck falling 5.8 percent, rail dipping 4.4 percent, pipeline down 16.6 percent, and ocean vessel trade tumbling 19.7 percent. BTS primarily attributed the decline in freight value for these modes to the precipitous drop in crude oil prices and volumes over the past year.
Trucks continued to be the most heavily utilized mode for moving goods to and from both Canada and Mexico, accounting for 63.5 percent ($31.2 billion) of the $49.2 billion in U.S. imports from Canada and Mexico during the month and 67.5 percent ($29.4 billion) of the $43.5 billion in exports, BTS said.
Rail remained the second largest mode by value, moving 15.2 percent of all U.S.-NAFTA freight, followed by vessel (6 percent), and pipeline (4.5 percent).
Year-over-year, the value of U.S.-Canada freight flows fell 7.2 percent to $48.2 billion in June, while U.S.-Mexico trade values slipped 5.5 percent to $44.5 billion.
BTS said lower crude oil prices contributed significantly to the decrease in the value of freight moved between the U.S. and both of its North American trading partners.
NAFTA trade decline continues in June
