NAFTA Cross-border Freight Flows

The 2007 database is improved compared to the previous version in the following aspects: First, we applied more detailed Harmonized Code (HC) to STCC commodity code conversion factors obtained from the U.S. Census port statistics. Besides conversion factors, the Census data, together with other data sources such as the FAA airport database, are also used to locate and verify international gateways. Meanwhile, our freight allocation methodology is modified to be more in line with our U.S. Inland Trade Monitor database. In addition, we take advantage of a data exchange project with some of the major U.S. railroad carriers to revise some of the rail volumes reported by the Bureau of Transportation Statistics (BTS).

In 2007, the total trade value between the United States and Canada increased 5.3% from 2006. Truck is still the preferred mode for the northbound flow, with a total of 130 million tons; followed by rail, 52 million tons; water, 34 million tons; and air, 2.8 million tons. For the southbound flow, railways are utilized most frequently, transporting 82 million tons; trailed by truc, 66 million tons; water, 61 million tons; and air, 0.7 million. In terms of weight, crude petrol or natural gas, petroleum or coal products, pulp or paper products, lumber or wood products, and coal are among the most heavily traded commodities.

For the northbound flow from the United States to Canada, Ontario replaces Alberta in the first place in terms of total tonnage. It attracts more than four times of the combined traffic of the trailing British Columbia and Quebec. Alberta drops to fifth place, passed by Manitoba as well. On the United States' side, Michigan, Minnesota, California, Ohio, and Illinois provide the highest inflows to Canada. Detroit (MI), Buffalo (NY), Seattle (WA), Grand Forks (ND), and Great Falls (MT) are the busiest gateways for this corridor.

For the southbound flow from Canada to the United States, Alberta stays ahead of other Canada provinces in exporting goods in tonnage terms to the United States. Ontario, Quebec, British Columbia, and Saskatchewan fill the rest of the top-five origins, identical to the 2006 ranking. In terms of destinations, Illinois, Washington, New York, Michigan, and Ohio handle the most incoming goods due to their proximity. Detroit (MI), Buffalo (NY), Chippewa County (MI), Seattle (WA), and Grand Forks (ND) are the busiest gateways for Canada to U.S.traffic.

Total trade volume between the United States and Mexico has increased 7.7% from 2006 to 2007. Truck shipments are still the dominant mode for southbound traffic, totaling 80 million tons; followed by water (29 million tons), rail (26 million tons), and air (0.06 million tons). For the northbound traffic, water shipments outweigh other modes at 112 million tons, followed by truck (31 million tons), rail (13 million tons), and air (0.11 million tons). Leading commodities between the United States and Mexico include crude petroleum and natural gas, petroleum and coal products, transportation equipments, coal, and pulp and paper products.

At the state level, Texas holds its lead in total exports to Mexico, transporting more tonnage than the rest of the other top-five states combined. California, Louisiana, and Arizona stay in the top-five ranking accompanied by Pennsylvania, which replaces Florida in 2007. On the Mexico side, Chihuahua, Tamaulipas, Colima, Mexico, and Coahuila De Zaragoza top other states in total attracted freight. Laredo, TX remained the busiest inland trade port handling exports, followed by four other Texas ports: El Paso, McAllen, Houston, and Brownsville.

Texas also leads the nation in total imports from Mexico. Other top destinations for Mexico traffic include Louisiana, California, Illinois, and Mississippi, the same as in 2006. On the Mexico side, Colima, Veracruz, Tamaulipas, Mexico, and Distrito Federal are the top-five suppliers of Mexico export goods. Michoacán drops from fifth place to sixth place in 2007, replaced by Distrito Federal in the top-five spot. Houston, TX; Jefferson County, TX; Laredo, TX; Pascagoula, MS; and Lake Charles, LA handled the highest amount of imports from Mexico.