BTS reports value of U.S.-NAFTA trade is down

The Department of Transportation’s Bureau of Transportation Statistics (BTS) recently reported that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico in October dropped 10.7 percent annually to $96.6 billion.

BTS said October marked the first month on record that saw total value of U.S.-Mexico freight flows topped U.S.-Canada freight flows, with the total freight value to and from both Canada and Mexico down from October 2014 and the decline in freight value with Canada was 18.5 percent higher than the 11.5 percent decline with Mexico, driven by the reduced unit price of crude oil.

Truck commodities in November fell 2.0 percent while carrying 67.1 percent of U.S.-NAFTA freight and accounted for $33.6 billion, or 65.4 percent of the $51.4 billion in recorded imports and $31.2 billion, or 69.0 percent, of the $45.3 billion recorded exports for the month.

Rail commodities were down 15.3 percent and is still the second highest mode by value, with 14.3 percent of U.S.-NAFTA freight, with vessel at 5.6 percent, air at 4.2 percent, and pipeline at 3.9 percent. Truck, rail, and pipeline account for 85.3 percent of total U.S.-NAFTA freight flows.

The value of U.S.-Canada freight totaled $47.7 billion in October 2015, which was down 18.5 percent from October 2014, with all modes of transportation carrying less value than a year earlier. BTS said it is the largest annual decline since a 19.4 percent drop off between October 2008 and October 2009. The October 2015 decline was driven by crude oil freight carried by vessel and pipeline down 31.2 percent and 52.3 percent, respectively, on an annual basis.

BTS said that the value of U.S.-Mexico freight totaled $48.9 billion in October 2015, down 1.5 percent from October 2014, as two out of five transportation modes – air and truck – carried more U.S.-Mexico freight than in October 2014. Year-over-year, the value of U.S.-Mexico air freight rose 14.8 percent, the largest percentage increase of any mode.