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Oil prices bump up trade deficit
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Martin Crutsinger
Associated Press Economics Writer
Updated: Jul 27, 2007, 9:02 AM
Published: Jul 12, 2007, 1:44 PM

Trade deficit rises to second highest level this year, reflecting jump in foreign oil bill

 

By MARTIN CRUTSINGER

AP Economics Writer

 

WASHINGTON America's trade deficit rose to its second highest level of the year, reflecting higher prices for foreign oil and a continued appetite for Chinese goods despite this year's recalls of tainted products.

The Commerce Department reported that the deficit for May rose to $60.04 billion, up by 2.3 percent from the April level. Most of the increase reflected a big jump in energy imports, which climbed to the highest level in nine months.

The deficit with China rose to $20.02 billion, the biggest imbalance in four months. So far this year, the deficit with China is running 17.2 percent ahead of the pace set last year when the overall deficit soared to an all-time high of $233 billion.

In other economic news, the nation's big retail chains reported lackluster sales in June as consumers, battered by high gasoline prices and the weak housing market, cut back on their purchases of discretionary items such as clothing.

According to a tally by Thomsan Financial, 12 big retailers beat sales expectations while 16 missed projections in June. Among those with disappointing results were Macy's Inc. and AnnTaylor Stores Corp. But Wal-Mart Stores Inc., the world's biggest retailer, surpassed analysts' expectations by putting a renewed emphasis on low prices.

Meanwhile, the Labor Department reported that the number of laid-off workers filing unemployment claims dropped to 308,000 last week, the lowest level in almost two months and a decline of 12,000 from the previous week.

The ballooning deficit with China has led to increasing calls for a crackdown on what critics see as China's unfair trade practices in such areas as currency manipulation and copyright piracy. Critics have also seized on a string of recalls this year of everything from pet food tainted with an ingredient imported from China to Chinese-made toys, tires and toothpaste as evidence that consumers' safety is being jeopardized by lax Chinese inspections.

The May trade flows, which occurred before most of the recalls were announced, showed strong demand for Chinese products with imports rising by 4.6 percent to $25.3 billion. The increase was led by clothing and textiles but also included shipments of fish and shellfish. In June, the Food and Drug Administration banned the import of five types of seafood from China after finding unacceptable levels of certain types of drugs.

So far this year, the overall deficit is running at an annual rate of $709 billion, down 6.5 percent from last year's $758.5 billion, which marked the fifth consecutive year that the deficit set a record.

Despite the widening gap with China, analysts are looking for the overall deficit to improve this year as U.S. exports benefit from strong growth in overseas markets and the falling value of the dollar against the euro and many other currencies. A weaker dollar makes U.S. goods cheaper in overseas markets while making imports more expensive and thus less attractive for U.S. consumers.

For May, exports of goods and services rose 2.2 percent to an all-time high of $132 billion, reflecting big gains in sales of American-made aircraft, electronic products and oil drilling equipment.

Imports also set a record, rising by 2.2 percent to $192.1 billion. The increase was dominated by a 6.2 percent jump in petroleum products, which rose to $26.6 billion, the highest level since last August.

The Chinese government, seeking to reassure the world that it is serious about cracking down on unsafe practices, announced Thursday that it will begin a daily food safety reporting system next month during test events for the 2008 Beijing Olympics.

Private economists said that the recent food and safety problems were unlikely to have much of an impact on Americans' purchases of Chinese products, predicting that consumers will continue to demand the low prices that Chinese goods offer.

Data released this week from China supported that view. The Chinese government said that its trade surplus for June with the rest of the world jumped to a record $26.9 billion, almost double the surplus reported in June 2006.

The U.S. deficit with Canada, America's biggest trading partner, fell by 11.5 percent in May to $5.2 billion. The deficit with the European Union dropped by 2.5 percent to $8.8 billion.

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GPA grows trade, market share
Intermodal volume up 20 percent
port photo
Rubber tired gantry cranes handle cargo at the Chatham Intermodal Container Transfer Facility at the Port of Savannah. The Georgia Ports Authority's Mason Mega Rail project will double rail lift capacity to 1 million containers per year by 2020 - photo by Provided
Staff Report
Updated: Apr 17, 2018, 1:07 PM
Published: Apr 17, 2018, 1:08 PM

The Georgia Ports Authority achieved 14 percent growth in March container volumes, moving 355,208 20-foot equivalent unit (TEU) containers.

From July 2017 to March, TEU container trade grew by 9 percent, or 255,786 additional units for a total of 3.08 million, a new record for Savannah.

"Savannah's continued strength is a reflection of our customers' commitment, Georgia's leadership, and the many dedicated service providers, GPA employees and ILA members who come together every day to achieve great things," said GPA Executive Director Griff Lynch. "March marked our 17th consecutive month of business expansion thanks, in part, to a strong economy and growing market share."

Intermodal rail volumes jumped by 20 percent in March and 15.4 percent for the fiscal year to date, for a total of 318,454 containers handled over nine months – another record for the GPA.

"As the numbers show, our rail cargo is growing at a faster pace than our overall trade," GPA Chairman Jimmy Allgood said. "This is important because rail is playing a key role in our responsible growth strategy. We anticipate our rail infrastructure investments to take 250,000 trucks off the road each year by 2020."

The GPA recently broke ground on its Mason Mega Rail Terminal, on which the Port of Savannah will build 10,000-foot unit trains within its own footprint. From the expanded rail infrastructure at Garden City Terminal, Class I rail providers CSX and Norfolk Southern will provide direct rail service to major Southeast and Midwestern markets from Memphis to St. Louis, Chicago to Cincinnati.

An added benefit is that the Mason Mega Rail project will move all rail switching on terminal – improving vehicle traffic flow around the port.

In August, the GPA will open its Appalachian Regional Port in Murray County. Located in an industrial belt, including the production and export of carpet and flooring, automobiles and tires, the ARP will provide an alternative to all-truck transit to Northwest Georgia.

Each round-trip container moved via the Appalachian Regional Port will offset 710 truck miles on Georgia highways.

March was also a strong month for roll-on/roll-off auto and machinery units at the Port of Brunswick and Ocean Terminal in Savannah. Colonel's Island Terminal in Brunswick handled 66,144 cars, trucks and tractors, while Ocean Terminal added 4,050, for a total 70,194, a 17.2 percent increase.

"The global economy is thriving and our volumes are following suit," Lynch said. "As existing accounts grow their footprint in the expanding auto facility in Brunswick, Georgia's competitive logistical advantages are drawing additional business across all of our docks."

Lynch noted that for the fiscal year to date, Mayor's Point breakbulk terminal in Brunswick grew by 44 percent (34,515 tons) to reach 112,728 tons of forest products. At East River Terminal, bulk cargo expanded by 34 percent July-March (189,918 tons) for a total of 750,384 tons.

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