US-NAFTA freight value declines in October year-on-year

Friday, 08 January 2016 01:56:33 (GMT+3)   |   San Diego
       

The value of US-NAFTA freight totaled $96.6 billion in October 2015 as all modes of transportation carried a lower total value of freight than a year earlier, according to the TransBorder Freight Data released today by the US Department of Transportation’s Bureau of Transportation Statistics (BTS). October was the first month on record in which the total value of US-Mexico freight flows exceeded US-Canada freight flows. Although the total freight value to and from both Canada and Mexico fell from October 2014, the decline in freight value with Canada (18.5 percent) was much larger than the decline with Mexico (1.5 percent) primarily due to the reduced unit price of crude oil.

Year-over-year, the value of US-NAFTA freight flows by all modes declined by 10.7 percent.

In October 2015 compared to October 2014, the value of commodities moving by truck decreased by 2.0 percent, while the value of air freight decreased by 2.1 percent and rail by 15.3. Vessel freight values decreased 35.0 percent and pipeline freight decreased 52.0 percent mainly due to the lower unit price of crude oil, which comprises a large share of the commodities carried by these modes.

Trucks carried 67.1 percent of US-NAFTA freight and continue to be the most heavily utilized mode for moving goods to and from both US-NAFTA partners. Trucks accounted for $33.6 billion of the $51.4 billion of imports (65.4 percent) and $31.2 billion of the $45.3 billion of exports (69.0 percent).

Rail remained the second largest mode by value, moving 14.3 percent of all US-NAFTA freight, followed by vessel, 5.6 percent; air, 4.2 percent; and pipeline, 3.9 percent. The surface transportation modes of truck, rail and pipeline carried 85.3 percent of the total US-NAFTA freight flows.

The value of US-Canada freight totaled $47.7 billion in October 2015, down 18.5 percent from October 2014, as all modes of transportation carried a lower value of US-Canada freight than a year earlier. The year-over-year decline in US-Canada freight flows is the largest since the 19.4 percent decline between October 2008 and October 2009.

The value of US-Mexico freight totaled $48.9 billion in October 2015, down 1.5 percent from October 2014, as two out of the five transportation modes – air and truck – carried more US-Mexico freight than in October 2014. The value of US-Mexico air freight rose 14.8 percent from October 2014 to October 2015, the largest percentage increase of any mode.

In October 2015, the top commodity category transported between the US and Canada by all modes was vehicles and parts, of which $5.7 billion, or 62.1 percent, moved by truck and $3.2 billion, or 35.6 percent, moved by rail. The top commodity category for all modes transported between the US and Mexico in October 2015 was electrical machinery, of which $10.1 billion, or 93.0 percent, moved by truck and $0.5 billion, or 4.5 percent, moved by air.



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