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

An amendment to the International Maritime Organization’s Safety of Life at Sea convention will go into effect requiring all shippers (importers and exporters) to certify and submit the Verified Gross Mass – the combined weight of the cargo and the container – to the steamship line and terminal operator in advance of loading the container aboard a vessel.

The Cudahy, Wis.-based company said it has refocused its LTL network standards as part of a move to further enhance service consistency, which it said will provide customers with better visibility to delivery dates and better work and collaborate with RRTS to better manage supply chain operations and economically manage transportation costs.

The NRF is calling for 2016 retail industry sales, excluding automobiles, gas stations, and restaurants, to see a 3.1 percent annual increase.

The Port of Oakland said that containerized import volume soared 75.76 percent last month from January 2015 totals.

The U.S. Customs & Border Protection announced earlier this week that it will delay the implementation of some parts of its Automated Commercial Environment (ACE) electronic document single window platform beyond the current February 28th deadline.

Article Topics

Blogs · All topics

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA