U.S.-NAFTA trade falls in October, reports BTS

United States trade with its North American Free Trade Agreement (NAFTA) partners Canada and Mexico fell 3.6 percent to $93.2 billion on an annual basis in October, according to data issued by the Department of Transportation’s Bureau of Transportation Statistics (BTS), which was released this week.

The 3.6 percent October decline follows a 2.3 percent September drop and a 0.7 percent gain in August.  BTS said that the total value of cross-border freight has declined each month annually in 21 of the last 22 months going back to January 2015, with the lone gain coming in August 2016.

Trucks carried 65.3 percent of U.S.-NAFTA freight in October and continued to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks accounted for $31.9 billion of the $50.3 billion of imports (63.4 percent) and $29.0 billion of the $42.4 billion of exports (67.6 percent). Rail followed trucking, moving 15.8 percent of all U.S.-NAFTA freight, followed by vessel at 5.4 percent, pipeline at 5.0 percent, and air at 3.8 percent. The surface transportation modes of truck, rail and pipeline carried 86.0 percent of the total value of U.S.-NAFTA freight flows.

From October 2015 to October 2016, the value of U.S.-Canada freight flows fell 2.5 percent to $46.5 billion, due to decreases in the value of goods moved by vessel (down 31.1 percent), air (down 8.8. percent), and truck (down 3.1 percent). The value of freight carried on pipeline and rail increased 21.7 percent and 2.5 percent respectively.  

And the value of U.S.-Mexico freight dropped 4.7 percent to $46.6 billion in October, due to decreases in the value of goods moved by air (down 18.0 percent) and truck (down 8.5 percent). The value of freight carried on three modes increased: pipeline, by 23.6 percent; rail by 10.4 percent; and vessel by 6.9 percent.

Trucks carried 69.9 percent of the value of the freight to and from Mexico. Rail carried 15.4 percent of the value of freight to and from Mexico followed by vessel, 7.9 percent; air, 3.1 percent; and pipeline, 0.8 percent. The surface transportation modes of truck, rail and pipeline carried 86.0 percent of the value of total U.S.-Mexico freight flows.