International trade can play a huge role in domestic trucking fleets, so it is important to be on the lookout for opportunities involving land-touching countries nearby. That’s where NAFTA trading comes in. The Bureau of Transportation Statistics (BTS) in the U.S. Department of Transportation has released new numbers involving NAFTA trading – and the results are good. According to the report, three out of five transportation modes saw the value of their traded goods rise 5% in September 2013 compared to this same time last year. The big winner here was the trucking industry which carried 59.4%, or over $56 billion, of all NAFTA trading in September 2013.
Although pipelines showed the biggest growth in value at 14.2% due to the rise in prices of oil and other petroleum-based products, trucking came in at #3 behind rail with 5.4% growth. The report states that trucking continues to be “the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners.” Construction parts and electrical machinery continue to be big reasons why trucking is in high demand for trade between the United States, Canada and Mexico.
Will these numbers continue to look good for truckers in years to come? It’s hard to say definitively. Mexico’s economy continues to grow, which promises higher demand from its NAFTA partners in the coming months. But, on the other hand, construction in Canada continues to suffer. The only constant that hasn’t changed are the extremely low interest rates being issued by all three governments. This keeps borrowing costs low, allowing for further development and trade between companies. Many suspect the interest rates will rise soon, but that has yet to happen.
For now, take this news with a grain of salt. If Mexico continues to develop, trucking companies in Texas should see good things coming their way. What do you think of trucking and NAFTA? Be sure to let us know here as well as on our Facebook page. Meanwhile, if you are interested in insurance for your trucking fleet, we encourage you to visit our website.