U.S.-NAFTA freight sees 10 percent annual decrease in July, reports BTS

U.S. trade with its North American Free Trade Agreement (NAFTA) partners Canada and Mexico dropped 10 percent to $83.7 billion on an annual basis in July, according to the Department of Transportation’s Bureau of Transportation Statistics (BTS).

This marks the 19th straight month of declines for the total value of U.S.-NAFTA freight and stands as the lowest monthly amount going back to February 2011, which stood at $76.7 billion.

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 of the $44.6 billion of imports (62.4 percent) and $26.4 billion of the $39.1 billion of exports (67.4 percent). And 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, with lower crude oil prices contributing to a year-over-year decrease in the value of freight moved between the U.S. and Canada. Crude oil is a large share of freight carried by pipeline and vessel, which were down 28.0 percent and 37.1 percent respectively year-over-year.

And transportation except rail carried a lower value of U.S.-Mexico freight annually, said BTS. Freight carried by rail increased 4.2 percent. Air decreased 8.2 percent and truck decreased by 10.1 percent. Pipeline and vessel freight value dropped by 12.3 percent and 18.2 percent respectively, both due mainly to lower crude oil prices.