USA: A trade magnet

Abundant in natural resources, a well-developed infrastructure, and high productivity, the U.S. is the world’s largest producer of oil and natural gas. Of the world’s 500 largest companies, 132 are headquartered in the US, twice that of any other country.

Surya Konnoth…

The United States of America, the world’s largest national economy and the second largest trading nation, represents a fifth of the global manufacturing output. Of the world’s 500 largest companies, 132 are headquartered in the US, twice that of any other country.
Abundant in natural resources, a well-developed infrastructure, and high productivity, the U.S. is the world’s largest producer of oil and natural gas. Houston in Texas has some of the major oil and gas companies which makes it one of the biggest energy sectors in the world.
Another Texan city, Austin has been described as America’s fastest-growing city for the fourth consecutive year, with a 2.5 growth rate in 2013. This is a positive trend recognised by David Shepherd, head of commercial business at IAG Cargo, the freight arm of British Airways and Iberia.“British Airways has a long tradition of being in the Texas market. We’ve served Houston and Dallas for a great many years and are the biggest international carrier in the North American market. We are very proud that we are adding a third gateway at Austin,” he said in a statement.
Austin is home to 15,200 manufacturing businesses including major employers Apple, Dell, IBM, Freescale Semiconductor, Samsung and Whole Foods. Computer software and electronics (‘Silicon Hills’) remains its biggest exported commodity worth an impressive $4.98 billion (62.5 per cent) between 2008 and 2012.
The top three exports from the US are machinery, construction equipment and electrical products and its three top imports are apparel, foodstuffs and pharmaceuticals. Its six largest trading partners are Canada, China, Mexico, Japan, Germany, and South Korea.
Air freight between the U.S. and the rest of the world in the month of June 2014 increased 5.1 percent from June 2013 to 815,457 tonnes. U.S. airlines carried 47.9 p ercent of total freight to and from international destinations. Charter service accounted for 11.1 percent of international freight traffic.
For the 12 months ended June 2014, US-world airfreight increased 3.5 percent over the same 12 month period a year earlier to 9.52 million tonnes. U.S. airlines carried 48.9 percent of total freight, compared to 50 percent the previous year.
The Middle East experienced the greatest relative increase in nonstop freight shipments to and from the US between the 12 months ended June 2014 and 2013, rising 11.4 percent. Australia/Oceania posted the second largest increase, up 6.3 percent. Four of the nine regions recorded a gain of freight traffic between the two 12 month ended periods. On an absolute basis, the Middle East posted the largest increase, up 29 thousand tonnes to 0.3 million tonnes.
The top five U.S.-international country gateways for freight in the 12 months ended June 2014 were Japan, Germany, the United Kingdom, China, and Hong Kong. Of the top 25 country markets, 17 posted positive freight growth rates for the 12 months ended June 2014 versus the 12 months ended June 2013. Chile had the highest loss rate at 18.5 percent. U.S. flag share was down in 13 of the 25 country markets, was unchanged in 4 country markets, and increased in the remaining eight country markets.
Emirates SkyCargo, the freight division of Emirates and global connector of trade and economies, transported a total of 49 000 tonnes of cargo in 2013 from the United States, equalling a 134 tonnes a day, while it carries more than 940 tonnes of cargo from the US to various points across the world each week.
The carrier recently added Los Angeles to its network of freighter destinations across the United States, with the start of a weekly service to the city. Los Angeles recently joined Chicago, Atlanta and Houston in Emirates SkyCargo’s US freighter network. In addition to freighter flights, Emirates SkyCargo also has belly-hold cargo services to Los Angeles, Chicago, Houston, New York, San Francisco, Seattle, Washington D.C., Boston and Dallas.
“We have a network of 10 key cities across the United States, which enables us to provide broad access to the world’s largest economy for businesses across our network, and for American businesses in other parts of the world. The US economy is rebounding and we are seeing an upswing in the demand for air cargo services,” said Hiran Perera, senior vice president - cargo planning and freighters, Emirates Airlines, in a press statement.
“Los Angeles ranks 14th in the world and fifth in the US in the amount of air cargo tonnage processed, and handled over 1.9 million tonnes of air cargo valued at nearly $ 87 billion in 2012, which is indicative of its importance as an air cargo hub. We anticipate good growth out of Los Angeles,” he added.
The top exports from Los Angeles are mainly perishables ranging from fresh and frozen fruits and vegetables, chilled and frozen meat and seafood, foodstuffs, as well as personal effects, construction equipment and electrical products, while top imports range from textiles, to perishables, electronics and personal effects. 