Subscribe to our free, weekly email newsletter!



U.S. shippers still struggle to generate exports

Slowing growth means that President Obama’s ambitious plan to double outbound trade in five years will fall short, say analysts at Drewry Maritime Research in London
By Patrick Burnson, Executive Editor
July 15, 2013

Despite a promising start this year, U.S. exports are failing to gain the traction needed for sustainable long-term growth.

Slowing growth means that President Obama’s ambitious plan to double outbound trade in five years will fall short, say analysts at Drewry Maritime Research in London.

In his first State of the Union speech in January 2010, President Barack Obama set out an ambitious goal to double exports over the next five years to support 2 million new jobs.

Here’s what Drewry makes of it all:

Following an initial burst that made that target look a realistic possibility, a slowdown in 2012 means that at just past the half-way stage Obama will have to settle for considerably less than he was hoping for.

US exports of goods and services increased by 17% in 2010, but that rate fell to 14.5% in 2011 and dropped even further to 4.6% in 2012. The most recent trade data shows that after five months of 2013 the speed of growth is slowing further at just 1.9% with falling exports to the ailing EU27 the major sore point. The US exports reviewed here include all types of goods and services (including oil and energy products) and all types of transport modes (including surface transport, liquid bulk shipping, container shipping and air freight).

At the current pace, Obama’s target of $3.15 trillion exports by the end of 2014 will not be reached until 2032, an overshoot of nearly two decades.

Despite its commonly held image as the world’s great consumer of other countries’ products, America is no slouch in shifting its own stuff to the world. It is ranked by the World Trade Organization (WTO) as the world’s second largest exporter behind China, overtaking Germany in 2010.

Between 2009 and 2012 exports of US goods increased by 46% with the biggest gains coming from the automotive (79%) and industrial supplies (69%) sectors, the latter including petroleum and related products. During this time, the fastest growing markets for US goods were Brazil and Mexico (both 68%) while China (now America’s third-largest market after Canada and Mexico) grew by 59%. In contrast, export growth to Europe floundered at below 20%.

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

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

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