Subscribe to our free, weekly email newsletter!

Good news for California exporters

Export shipments by California companies in June were valued at $13.83 billion, a gain of 13.0n percent over the $12.25 billion reported in the same month last year, according to an analysis by Beacon Economics of foreign trade data released this morning by the U.S. Commerce Department
By Patrick Burnson, Executive Editor
August 11, 2011

While the U.S. economy may be languishing in inertia, California exporters racked up their 20th consecutive month of vigorous growth in June.

Export shipments by California companies in June were valued at $13.83 billion, a gain of 13.0n percent over the $12.25 billion reported in the same month last year, according to an analysis by Beacon Economics of foreign trade data released this morning by the U.S. Commerce Department.??

“Adjusting for inflation, California’s export trade has firmly returned to its pre-recession peaks,” said Jock O’Connell, Beacon Economics’ International Trade Adviser.

“More importantly, on a seasonally-adjusted basis, California’s export trade remained on an upward trajectory through the second quarter of 2011, despite the economic and financial tribulations several of our leading trading partners have been enduring,” O’Connell said.

The importance of this favorable news cannot be under-estimated. Gearing up to meet export demand is one of the few incentives U.S. corporations have for investing in the domestic economy. “The primary source of growth for the U.S. over the past year has been through the export sector,” said Beacon Economics’ Founding Partner Christopher Thornberg. “Export trade is key in rebalancing the domestic economy given the massive trade deficit that opened in the middle part of the last decade.”

Beacon Economics expects continued growth in California’s export trade in the second half of the year, when the pace of trade historically picks up.

“The upside of a battered dollar is that California products, from farm produce to pharmaceuticals, are at bargain prices in the world market,” O’Connell said. “The recent drop in oil prices doesn’t hurt.”

The picture was less rosy on the import side of the ledger. The number of loaded inbound shipping containers arriving at the state’s seaports in June was down by 5.5 percent from the same month last year, while import tonnage through California’s airports declined by 11.7 percent.

Shippers don’t necessarily expect this to worsen, however.

We are not expecting large-scale cargo diversions,” said Robin Lanier, executive director of the Waterfront Coalition “The business climate for shippers using southern California can be difficult times, and those ports are more expensive because of PierPass and other fees.  “But I believe that most of the discretionary cargo that could move easily to other ports, has already left Southern California.”

About the Author

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

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.

Article Topics

News · Air Cargo · Global Trade · Ocean Cargo · All topics


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