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 [email protected]

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
Face security threats head-on. Protect data beyond perimeter.
Traditional Data Loss Protection (DLP) solutions present a number of serious shortcomings and challenges for companies deploying them, creating a clear gap in the market.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Securing IoT data across the connected supply chain
Learn why a holistic approach to IAM is the most effective way to govern access to your systems and information requested by your partners, vendors, customers, and connected devices.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...