Subscribe to our free, weekly email newsletter!



A caveat on California

By Patrick Burnson, Executive Editor
April 14, 2011

Although California exports continue to surge, the news is not all good, say economists. In the case of the latest figures, foreign buyers were banking on continued weakness in the U.S. dollar by snapping up a wide range of relatively inexpensive American products from soybeans to aircraft. 

As we reported here earlier in the week, Beacon Economics’ analysts expect continued moderate growth in exports…but not without caveats.

Analysts noted that the growth in exports is partly a function of solid growth in foreign nations—particularly developing economies. The rapid pace of inflation in developing nations relative to the United States has been putting pressure on the real value of the dollar, which is now 15 percent cheaper than it was in 2005 relative to a basket of developing nation currencies.

Beacon also disputed the often-cited belief that exports might have been slowed in February by anticipation of the disruptive effects New Year’s holiday celebrations have on economic activity throughout much of Asia.

On the plus side for California exporters, the dollar has fallen 6 percent so far this year against a weighted basket of currencies from America’s major trading partners. Most forecasts call for the dollar to move even lower as the year through this year.

The earthquake and tsunami that devastated northeastern Japan and the subsequent nuclear disaster will roil trade for months but should be offset to some extent by a surge in shipments of relief supplies and reconstruction materials, Beacon noted.

And as our other bloggers have agreed, the biggest wild card right now (“arguably,” said Beacon) involves the price of fuel.

For related articles click here.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

With an eye on capitalizing on future trade and commerce growth in South Asia, express delivery and logistics services provider DHL today rolled out its plans to build an $85 million EUR ($93 million USD) DHL Express South Asia Hub, which will be a 24-hour express hub facility within the Changi Airfreight Center at the Singapore Changi Airport.

While the Federal Railroad Administration (FRA) has long stated its goal of having Positive Train Control (PTC) technology installed on 40 percent of its network by December 31, 2015, railroad industry stakeholders have repeatedly stated that reaching that deadline would be a stretch. It now appears that the railroad sector has some members of Congress sharing the same line of thought with legislation rolled out this week that pledges to extend the PTC deadline to 2020.

West Coast port authorities may be overstating the obvious when they decry “business as usual.” But it’s refreshing to see them finally coming around.

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Article Topics

Blogs · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA