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Canada-US Freight Flow Keep Slowing

The latest US Transportation Department figures show U.S.-Canada freight flows fell 7.2% to $48.2 billion between June 2015 and June 2016 as all modes of transportation except air carried a lower value than a year earlier.

Lower crude oil prices contributed to a year-over-year decrease in the value of freight moved between the two countries. Crude oil is a large share of freight carried by pipeline and vessel, which were down 16.1% and 31.9%, respectively, year-over-year, according to the report.

Trucks carried 60.4% of the value of the freight to and from Canada. Rail carried 15.8% followed by pipeline with 7.9%, air at 4.9% and vessel with 4%.

In June 2016, the top commodity category transported between the U.S. and Canada by all modes was vehicles and parts, of which $5.6 billion, or 57%, moved by truck and $4 billion, or 40.7%, moved by rail. The surface transportation modes of truck, rail and pipeline carried 84.1% of the value of total U.S.-Canada freight flows.

Overall, figures show June marked the 18th consecutive month the total value of U.S. freight movements with both NAFTA partners Canada and Mexico declined from the same time a year earlier.

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