NAFTA Supply Chains Show Signs of Softening

The Department of Transportation's Bureau of Transportation Statistics (BTS) recently reported that that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico dropped 9.5 percent on an annual basis in December to $86.7 billion.

Truck commodities in December fell 3.1 percent while carrying 60 percent of U.S.-NAFTA freight and accounted for $28.0 billion, or 60 percent of the $46.8 billion in recorded imports and $28.3 billion, or 67.3 percent, of the $40 billion recorded exports.

Rail commodities were again the second highest in value by mode, moving 15.1 percent of all U.S.-NAFTA freight, with vessel next at 6.4 percent, pipeline at 4.7 percent and air at 4.3 percent, with truck, rail, and pipeline handling 83.2 percent of total U.S.-NAFTA freight flows.

The value of U.S.-Canada freight totaled $45.0 billion in December 2015, which was down 15.2 percent annually as all modes of transportation carried a lower value of U.S.-Canada freight annually. BTS said lower crude oil prices were a factor in the decrease, with crude oil moved by vessel and pipeline down 35.2 percent and 47.4 percent, respectively, annually.

The value of U.S.-Mexico freight came in at $41.7 billion in December, which was down 2.4 percent annually, with air and truck carrying more U.S.-Mexico freight value annually.

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