DIVERSION OF OVERSEAS TRADE BETWEEN U.S. AND CANADIAN PORTS

United States-Canadian trade diversion is discussed with regard to actual and potential diversion, causes of trade diversion, and the economic impact thereof. Special reference is made to a recent report prepared by Manalytics Incorporated for the US Federal Maritime Commission. Their estimates of diversion potential are shown to be inadequate and misleading in their application. Also, the examination of transportation costs and prices presented in the same report is superficial and requires further development. Major reasons for trade diversion cited in this report are dock strikes, port congestion, lower transport costs on Canadian routes, and service characteristics. The discussion also criticizes the use of trade volume statistics as a measure of economic impact. It is pointed out that impact is related to transportation revenues generated or lost as a result of cargo diversion and to the savings accruing to shippers who ship by efficient, low cost routings.

• Corporate Authors:

  Canadian Transport Commission

  Systems Analysis Branch, 275 Slater Street
  Ottawa, ONo K1A 0N9,   Canada 
• Authors:
  • Bunting, P M
• Publication Date: 1972-5

Media Info

• Features: References;
• Pagination: 18 p.

Subject/Index Terms

• TRT Terms: Cargo preference; Competition; International; International transportation; Policy; Trade; Transportation; Transportation policy
• Old TRIS Terms: Trade diversion
• Subject Areas: Policy; Transportation (General);

Filing Info

• Accession Number: 00034655
• Record Type: Publication
• Source Agency: Canadian Transport Commission
• Files: TRIS
• Created Date: Sep 27 2001 12:00AM