Posts Tagged ‘Trade Profile’

Trade Profile – Imported Cut Flowers

Monday, January 28th, 2013

Often when we consider trade movements, it’s easy to focus on the “larger” movements, such as containers or bulk shipments. Sometimes we forget that there are other cargos in the system. With Valentine’s Day coming soon, we are starting to see the first of the seasonal peaks in cut flowers (the second peak occurs later this spring). Worldwide, the U.S. is the second largest import market for cut flowers, only behind the European Union.
In 2011, the United States imported $880 million in cut flowers (HSCode 0603), led by cut roses, general cut flowers, chrysanthemums and car-nations. On a year-to-date base, total flower imports are up 9.6% for 2012. Generally, flowers from Latin America arrive at the Miami Airport on cargo planes and are transloaded to refrigerated trucks for dis-tribution throughout the U.S. Miami handles roughly 82% of all cut flower imports, followed by JFK Airport and then Los Angeles International Airport. The largest cut flower supplier into the U.S. is Columbia, which exported products worth $562 million, followed by Ecuador ($147 million) and the Netherlands ($51 million). Customs and Border Patrol Agricultural Specialists (formally USDA APHIS inspectors) require that the flowers arrive pest free.


Since the 1980s, the strong growth of imports has caused domestic producers to shift away from competing directly with imported roses, etc., to specialty varieties, that either have new traits or colors. So when you are purchasing flowers this Valentine’s Day, you probably purchased a bouquet from Columbia or Ecuador that arrived through Miami before arriving in your city.

On a final note, I first started researching transportation early in my career while at LSU. (It was here that I got bite by the “transportation bug”!) The work culminated in a report, “Technological and Economic Factors in Landing Latin American Perishables,” (Department of Agricultural Economics Research Report No. 692, Louisiana State University Agricultural Center, September, 1992, written by Roger A. Hinson, David H. Picha, and Bruce Lambert).

 

Trade with Libya

Friday, March 11th, 2011

Libya’s economy remains very dependent upon oil production. (According to the CIA World Fact Book, oil revenues accounted for 95% of the export earnings, 25% of Gross  Domestic Product and 80% of Government Revenue.)  Over the past few years, Libya has worked to normalize relations  with the Europe and the United States, while also seeking to attract foreign direct investment in its energy sector. (President Bush signed an Executive Order which ended economic sanctions against Libya in 2004.)  When oil prices fell in 2009, the Libyan  economy suffered, as well as many large scale infrastructure projects. At the same time, Libya’s lack of industry and other sectors, has contributed to the nation’s high structural unemployment, despite many efforts by the Libya Government to diversify the economy.
Despite the current political upheavals, Libya largely trades with Europe (its larger trading partner is Italy which accounts for almost 40% of Libya’s trade, which is not surprising given its historic ties). In comparison, the U.S. receives roughly 5% of the country’s exports.

For the U.S., trade with Libya equaled roughly 2.8 billion dollars of trade in 2010. Imports from Libya amounted to $2.1 billion dollars, but 97% of the import value was crude petroleum and other petroleum products. In 2010, the U.S. exported 665 million dollars, most of which was vehicles and parts for industrial equipment.

For the Southeast, total trade with Libya equaled 418 million, a sharp decline from the large import shipments of petroleum. Exports to Libya reached a record 154 million, a 16% increase from 2010, mostly from increased shipments of cereals. (Libya imports roughly half of their foodstuffs.)  Part of the sharp rise and decline in petroleum imports in the Southeast was driven by the high price of petroleum in 2008.  (As Libyan crude is sweet (low sulfur, easy to refine) it is somewhat of a premium on the market, especially for low sulfur fuels, etc.)  The spike in the Southeast was largely the result of imports rising in 2008, and collapsing in 2009.  While net imports declined throughout the U.S., references in New Jersey and Texas were able to better recover some of the lost import volumes.

South Korean Trade with the U.S.

Monday, January 24th, 2011

After the Korean War, the South Korean economy began a strong export lead economic growth strategy, despite poverty levels that were similar to most developing third world nations.  Today, South Korea ranks as one of the world’s top 20 economies, but remains heavily dependent upon exports (automotive, electronics, and steel) to sustain its growth.

In 2009, South Korea ranked among the top ten trading partners of the U.S.  the U.S. imported over $38 billion dollars of goods in 2009.  (This represented an 18% drop from the 2008 levels.)  However, on a year to date basis, imports from South Korea, led by increased shipments of electrical goods, vehicles, and industrial machinery have experienced strong recoveries.

U.S. exports to South Korea amounted to $29 billion in 2009, which also represented a declined from 2008.  However for most of 2010, trade with Korea has grown, largely because of strong growth in exports of electrical and industrial machinery, aircraft and grains, supported by the weaker U.S. dollar.

Korean traffic through the Region’s gateway facilities ranks among the top 10 import markets ($6 billion in 2009) but as a top 20 export destination ($4 billion in trade).  (Most trade between the U.S. and Korea passes over the West Coast.)  For imports, Savannah is the largest regional gateway, followed by New Orleans and Mobile.  Regarding exports, New Orleans handles more outbound tonnage, followed by Savannah and Norfolk.

It is forecasted that total U.S. South Korea trade will see strong growth in exports over the next 20 years, with average annual compound growth rates over 7 percent.  Imports will also grow, but at a much lower pace, with a forecasted annual compound growth rate of almost 4%.  This stronger growth in exports is expected to result in the U.S. having a net trade surplus with Korea by the end of the decade.

Given the discussion regarding the signing of a Free Trade agreement between the U.S. and South Korea, the Southeastern U.S. stands to benefit from increased trade.  The Kia plant in Georgia provides a new link to South Korea, which will only increase trade opportunities as South Korea-based Asiana Airlines began cargo service between Atlanta and Seoul this fall.   With the large focus on grain, oil seeds and other products, South Korea will remain a large market for Southeastern agricultural exports.

Here is the  Powerpoint with more slides for each of the Southeastern States.itts-South Korea trade