Total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement rose 7.7 percent year-over-year in June 2017, with trucks leading the way in terms of freight by mode.
Trucking was the most utilized mode in NAFTA trade.
The total value of trade between the United States and its partners in the North American Free Trade Agreement (NAFTA) – Canada and Mexico – rose 7.7 percent in June 2017 compared with the same month a year ago, according to the Department of Transportation’s Bureau of Transportation Statistics (BTS).
The increase in June marks the eighth consecutive month in which there has been a year-over-year increase in NAFTA trade value.
BTS data showed that trucks carried 63.4 percent of U.S.-NAFTA freight, accounting for 60.6 percent of imports ($32.2 billion) and 66.6 percent of exports ($31 billion). As a result, trucks proved to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners, according to BTS.
Rail was the second largest mode by value, moving 15.5 percent of all U.S.-NAFTA freight, according to BTS. Freight by vessel followed at 6.4 percent, pipeline at 5.3 percent, and air at 3.8 percent. According to the data, truck, rail and pipeline carried a combined total of 84.1 percent of U.S.-NAFTA freight flows.
From June 2016 to June 2017, the value of U.S.-Canada freight flows increased by 6.0 percent to $51.1 billion as the value of freight on three major modes – pipeline, rail, and truck – increased annually, said BTS. Pipeline carried an increase of 30.5 percent, rail 8.1 percent, and truck 2.3 percent in freight. Air decreased by 2.9 percent, and vessel decreased by 10.3 percent, however.
During the same period, U.S.-Mexico freight flows was up 9.4 percent to $48.7 billion, with four modes – vessel, rail, air and truck – increasing annually. Vessel freight increased by 27.7 percent, rail by 11.9 percent, air by 10.4 percent, and truck by 6.3 percent, according to BTS data. Pipeline was off 22.7 percent, however.
The three NAFTA players recently concluded the second round of renegotiation talks, making minimal progress as U.S. President Donald Trump continues to strive for major changes in the 24-year-old trade agreement.