U.S. government data shows the value of imports and exports in the North American free trade zone fell, with vessels and pipelines bearing the brunt of the downturn.
The value of cross-border trade in goods between trading partners in North America fell 3.8 percent in June to $99 billion compared to June 2014, according to the U.S. Department of Transportation. The decrease was primarily attributed to declines in the value of oil shipments by pipeline and ocean tankers as crude oil prices took a tumble on world markets.
Year-to-date, non-services trade between the United States, Canada and Mexico is down 5.5 percent.
The value of commodities moved in June by truck increased 5.1 percent to $64.4 billion, but pipeline movements fell 40 percent in value and vessel freight values dropped 24.4 percent. Rail, another major mode for moving freight between the three neighbors, declined in value by 4.5 percent.
Imports represent 54 percent of U.S. freight trade within NAFTA by value.
The value of U.S.-Canada freight totaled $52 billion in June, down 10.3 percent. Trade value went down in large part because Canada, which is experiencing a recession, is a major exporter of oil to the United States.
The United States engaged in $47.1 billion worth of goods trade with Mexico, up 4.4 percent from June 2014. Truck, rail and air all carried more two-way trade than a year ago.
In June 2015, the top commodity category for all modes transported between the U.S. and Canada was vehicles and parts, of which $5.8 billion, or 60.8 percent, were moved by truck and $3.5 billion, or 36.6 percent, by rail. Vehicles and parts replaced mineral fuels as the top commodity in March 2015 and continues to be the top commodity for a fourth straight month. The top commodity category for all modes transported between the U.S. and Mexico in June 2015 was vehicles and parts, of which $4.7 billion, or 51.8 percent, were moved by truck and $3.8 billion, or 41.7 percent, by rail.
Lower oil prices cause June pullback in NAFTA trade
