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US trade with Mexico, Canada rises 7.9pc in Oct to US$100.6b

FOR the twelfth 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, has increased on a year-over-year comparision.

According to the Department of Transportation's Bureau of Transportation Statistics (BTS), total cross-border trade rose by 7.9 per cent in October 2017 to US$100.6 billion compared to the same month in 2016.

The value of commodities moving by vessel increased 32.6 per cent, pipeline by 9.3 per cent, air by 6.1 per cent, truck by 5.7 per cent, and rail by 3.3 per cent, according to BTS statistics.

"The large percentage increase in the value of goods moving by vessel is due in part to an increase in the unit value and an 18 per cent increase in the tonnage of mineral fuels traded," the transportation statistics bureau explained in a statement.

BTS data also shows that trucks carried 64 percent of US-NAFTA freight and remain the most utilised mode for moving goods to and from both Canada and Mexico. Trucks accounted for $33.4 billion of the $54.5 billion of imports (61.2 per cent) and $31 billion of the $46.1 billion of exports (67.3 per cent), according to bureau statistics.

The second largest mode by value was still rail, which moved 15.1 per cent of all US-NAFTA freight, followed by vessel at 6.6 per cent, pipeline at 5 per cent and air at 3.8 per cent. The surface transportation modes of truck, rail and pipeline carried 84.1 per cent of the total value of US-NAFTA freight flows, according to American Shipper.

The value of US-Canada freight flows rose by 6.8 per cent to $49.7 billion and those of US-Mexico increased by 9 per cent to $50.8 billion from October 2016 to October 2017.