Subscribe to our free, weekly email newsletter!


Exports up again for California

The $12.49 billion in goods California businesses shipped abroad in November exceeded the $10.95 billion sent to foreign markets in November 2009 by a healthy 14.1 percent, according to an analysis by Beacon Economics of foreign trade data recently released by the U.S. Commerce Departmen
By Patrick Burnson, Executive Editor
January 14, 2011

California’s exporters racked up another impressive performance in November, even while failing to keep pace with growth in the overall U.S. export trade. 

The $12.49 billion in goods California businesses shipped abroad in November exceeded the $10.95 billion sent to foreign markets in November 2009 by a healthy 14.1 percent, according to an analysis by Beacon Economics of foreign trade data recently released by the U.S. Commerce Department.

“On the bright side, this was our best November ever in inflation-adjusted terms, and it did mark the thirteenth consecutive month of year-over-year increases in California’s export trade,” said Jock O’Connell, Beacon Economics’ International Trade Adviser.

“The not-so-good news is that California was decisively outpaced by the nation as a whole in overall merchandise export growth in November, 19.4 percent to 14.1 percent,” he added.

California’s export trade includes a relatively high percentage of re-exports, items that were previously imported into the U.S. and which have had no significant value-added prior to being shipped abroad.

“California’s numerous trading companies do a superb job sourcing goods from around the world and matching them with foreign customers,” O’Connell said.  “That’s why California’s re-export trade leaped by 36.3 percent in November.” In contrast, exports of goods manufactured in California grew by just 6.7 percent over November 2009, while overall U.S. manufactured exports surged by 16.7 percent. Likewise, exports of non-manufactured goods rose by 16.4 percent in California, while increasing by 22.9 percent nationally.

In an interview with LM, O’Connell noted that the ports of LA/Long Beach and Oakland are reporting a surge in outbound volume, but that export figures can be deceiving.

“When measured in true value, the cargo is still marginal,” he said. “The vessels are coming in with expensive commodities from China and the Far East, and leaving with hay and waste material.  It’s not what we would describe as a fair balance.”
California accounted for 11.1 percent of all U.S. merchandise exports in November, but just 9.6 percent of its manufactured exports. The state’s exports of non-manufactured goods did represent 12.4 percent of the nation’s exports of those goods, but fully 19.8 percent of the nation’s shipments of re-exported goods came from California.

As a consequence, O’Connell says California’s export trade has a less immediate positive impact on the state’s economy and on its propensity for job creation.

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

Spot market freight volumes for the month of August remained elevated compared to seasonal norms, according to data issued this week Portland, Oregon-based freight marketplace platform and information provider DAT.

Factors such as rising freight rates, shrinking capacity, an increased desire for global supply chain visibility, have all worked together to drive the need for instituting a culture of continuous improvement in logistics operations and transportation management systems (TMS). To meet today's complex logistics challenges, managers are stepping into a more streamlined, automated approach to transportation management in order to function at optimal levels both domestically and internationally. Read the latest special report.

The Atlanta-based company said that it plans to hire between 90,000-to-95,000 seasonal employees, up from about 85,000 last year, to support “the anticipated holiday surge” for package deliveries commencing in October and running through January.

The Memphis-based company reported today that quarterly net income of $606 million was up 24 percent annually, and revenue, at $11.7 billion, was up 6 percent. Operating income at $987 million was up 24 percent.

The World Shipping Council (WSC) released an update to its survey and estimate of containers lost at sea.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA