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Canada Regains Top Trade Spot With US; But Freight Still Down

Canada regained its historical rank as top trade partner with the U.S. after previously falling behind Mexico.

However, the U.S. DOT reported the value of U.S.-Canada freight totaled $45.1 billion in November 2015, down 13.8% from a year earlier as all modes of transportation also carried a lower value.

Lower crude oil prices contributed to the year-over-year decrease.

Trucks carried 60.4% of the freight to and from Canada, followed by rail at 16.3%.

In November 2015, the top commodity category transported between the U.S. and Canada by all modes was vehicles and parts, of which $5.4 billion, or 59%, moved by truck.

Overall across NAFTA, the value of freight moving between the U.S. and Canada and Mexico totaled $88.2 billion in November 2015, down 8.4% from a year earlier.

Again, large decreases in the value of commodities moved by pipeline and vessel in November were a big factor. Also, increases in the value of the U.S. dollar against both Mexican and Canadian foreign currencies, has contributed to year-over-year declines each month through 2015’s reported numbers.

The value of commodities moving by truck decreased by 0.4%, while the value of air freight decreased by 7.3% and rail by 9.8%. Decreases of more than 40% each were reported for vessel and pipeline freight.

Trucks carried 66.2% of U.S.-Canada/Mexico freight and continue to be the most heavily used mode for moving goods to and from U.S.

Trucks accounted for $30 billion of the $46.8 billion of imports, or 64.1%, and $28.3 billion of the $41.3 billion of exports, or 68.5% Rail remained the second largest mode by value, moving 15.1% of all U.S. trans-border freight.

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