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US trade with Mexico, Canada rises 2.9pc in Feb to US$86.5b

FOR the fourth month in a row, total cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA), which includes Canada and Mexico, rose by 2.9 per cent in February 2017 to $86.5 billion, according to the Department of Transportation's Bureau of Transportation Statistics (BTS).

The BTS noted total NAFTA freight values grew by 6.7 per cent in January, representing the largest year-on-year increase since September 2014.

However, for the whole of last year, NAFTA freight traffic fell 3.4 per cent from 2015 to $1.069 trillion, reported American Shipper.

Three of the five major transportation modes moved more freight by value in February, with pipeline trade jumping 65.2 per cent, marine vessel up 36.9 per cent, and rail up seven per cent.

The value of cargo moved by the other two modes fell, however, with commodities moving by air sliding 1.6 per cent, and truck declining 3.6 per cent.

BTS attributed the substantial increase in pipeline and vessel trade values to a 76 per cent year-on-year increase in the price of crude oil.

Trucks continued to be the most heavily utilised mode for moving goods to and from both Canada and Mexico, accounting for 59.7 per cent ($28.1 billion) of the $47.2 billion in US imports from Canada and Mexico during the month and 67.4 per cent ($26.5 billion) of the $39.3 billion in exports, the bureau said.

Rail remained the second largest mode by value, moving 16.2 per cent of all US-NAFTA freight, followed by pipeline (6.5 per cent), vessel (5.7 per cent), and air (3.7 per cent).