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 ·

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 pburnson@peerlessmedia.com.

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!

Article Topics

Air Cargo · Global Trade · Ocean Cargo · All Topics
Latest Whitepaper
The Internet of Things and the Modern Supply Chain
Learn today how the internet of things is transforming supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...