Trucking Sees Smallest Decline In Cross-Border Freight Flows
Trucking and four other transportation modes carried less U.S. freight by value with North American Free Trade Agreement (NAFTA) partners Canada and Mexico in March 2016 compared to a year earlier, according to a new Transportation Department report.
Evan Lockridge・Former Business Contributing Editor
May 27, 2016
Percent change in value of U.S.-NAFTA freight flows by mode: March 2015-2016.Graphic: U.S. DOT
2 min to read
Percent change in value of U.S.-NAFTA freight flows by mode: March 2015-2016. Graphic: U.S. DOT
Trucking and four other transportation modes carried less U.S. freight by value with North American Free Trade Agreement (NAFTA) partners Canada and Mexico in March 2016 compared to a year earlier, according to a new Transportation Department report.
Ad Loading...
The total value of cross-border freight moved fell 5.8% to $90.5 billion as the value of commodities moving by truck declined 1.1%, the smallest decrease from 2015 to 2016 of any mode.
Ad Loading...
The value of freight carried on other modes also declined: rail, 7.7%; air, 9%; vessel, 31.9%; and pipeline, 33.2%.
“A drop in the price of crude oil played a key role in the large declines in the dollar value of products shipped by vessel and pipeline,” the department said. “Crude oil comprises a large share of the commodities carried by these modes.”
Trucks carried 67.3% of U.S.-NAFTA freight and continued to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. They accounted for $31.4 billion of the $48 billion of imports, or 65.3%, and $29.5 billion of the $42.5 billion of exports, or 69.4%.
Rail remained the second largest mode by value, moving 15.5% of all U.S.-NAFTA freight.
From March 2015 to March 2016, the value of U.S.-Canada freight flows fell 8.8% to $46.4 billion as all modes of transportation carried a lower value of U.S.-Canada freight than a year earlier.
Ad Loading...
Trucks carried 62.1% of the value of the freight to and from Canada while rail carried 17%. The top commodity category transported between the U.S. and Canada by all modes was vehicles and parts, of which $5.3 billion, or 55.4%, moved by truck.
During this same year-over-year March period, the value of U.S.-Mexico freight fell 2.6% to $44.1 billion as all modes of transportation except truck carried a lower value of U.S.-Mexico freight than a year earlier.
Freight carried by truck increased 0.7%, primarily because of an increase in shipments of computers and parts, according to the department. Rail freight value declined 8.6% while air freight value declined 10.1%. Pipeline freight value dropped by 14.2%, while vessel freight value decreased by 18.9%.
Trucks carried 72.7% of the value of freight to and from Mexico while rail carried 14% The top commodity category transported between the U.S. and Mexico by all modes was electrical machinery, of which $7.7 billion, or 91.3%, moved by truck.
Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.
More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.
HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.
Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.
NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.
A federal court ruling allows New York City’s congestion pricing program to continue, leaving truck tolls in place for fleets delivering into Manhattan.
Fontaine Modification has introduced a new customer portal designed to give fleets real-time visibility into the truck modification process, addressing one of the most common questions fleet managers face: “Where’s my truck?”
Strong freight rates, rising volumes and tighter capacity push trucking conditions higher, though diesel prices could temper gains in the near term, FTR cautions.