Drop in Cross-Border Freight Movements from July 2014 to 2015

Posted by World Trade Distribution
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Filed Under: Container Freight

Imports and exports are a critical part of the U.S. economy. As such, freight is constantly moving between the U.S. and Canada via land, and air freight brings in and distributes out freight to and from other countries. However, in July of 2014, the amount of cross-border freight movement that occurred—barring air freight—took a cumulative eight percent drop.

Freight Movement Between U.S. and Mexico, U.S. and Canada

The decrease in freight movement between the U.S. and Mexico was the least significant, wti freight rates decreasing only 0.8 percent. The amount of freight moved between the two countries totaled $45.5 billion in July of 2015. However, truck freight between July of 2014 and July of 2015 between Mexico and the U.S., as well as air freight, did increase. The amount of freight covered by air increased by 9.5 percent; the amount of freight carried by truck increased 4.7 percent over the course of the year. What’s more, both the amount of imports and exports between the two countries increased, by 5.6 percent and 3.6 percent, respectively.

The decrease in the amount of freight moved between the U.S. and Canada was much more significant; freight rates dropped 14 percent between July of 2014 and July of 2015. All methods of freight transportation carried less freight in 2015 than in 2014 from Canada to the U.S., the U.S. to Canada. The most common methods of freight transportation between the U.S and Canada are truck, rail, and pipeline, which account for 82.8 percent of all freight movement between the two countries.

Why the decrease in the cross-border freight movement?

The drop from July of 2014 to July of 2015 may have been caused by a reduced price of mineral fuel, which decreased the value of items moved by pipeline and vessel. However, HDT Trucking Info highlights the fact that just because there was a decrease in the value of freight shipment does not necessarily mean that there was a decrease in the actual value of freight shipped.

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Oct 07 2015
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