Louisiana Exports Decline in First Six Months of Year, While Sales to China Surge

Continuing to feel the full effects of the global recession and low agricultural and oil prices, Louisiana's worldwide merchandise exports declined by nearly one-third in value in the first half of 2009 compared to one year earlier, according to a report issued today by the World Trade Center of New Orleans. This follows a record-breaking year in 2008 with exports from the state reaching nearly $42 billion.

Louisiana’s total export shipments for January-June 2009 declined 31.6 percent to $15.0 billion, compared to the first six months of 2008, while total U.S. exports dropped by 24.6 percent, according to the WTC report. However, even with its lower exports for the January-June period, Louisiana moved up to 8th in the state rankings from 9th place for all of 2008.

The decrease in total vessel weight for Louisiana’s exports for the first six months of 2009 was 11.6 percent, compared to the first half of last year, while total U.S. exports measured in tonnage registered a 15.4 percent decline.

Louisiana's principal export markets for the first six months of 2009 were China, Japan and Mexico. The state’s shipments to China increased 48.1 percent, reaching $2.3 billion in the first half of the year as exports to almost all other major markets declined.

"The full effect of the prolonged worldwide recession is still impacting Louisiana’s exports to most markets. We’re hopeful that the recovery that appears to be underway in China, India, and some other countries will spread worldwide,” said Larry Collins, Director of International Services with Louisiana Economic Development.

Agricultural products ($6.3 billion, a fall of 24.8 percent); petroleum and coal products ($2.57 billion, a 53.5 percent decline); chemicals ($2.53 billion; a 28.3 percent decline); and processed foods ($1.5 billion, a 28.4 percent decline) ranked as Louisiana's top exports for the January-June 2009 period.

"The recent gradual rise in oil prices may generate export opportunities for Louisiana suppliers of oilfield services,” said Donald van de Werken, Director of the New Orleans U.S. Export Assistance Center. “For example, many large foreign delegations are scheduled to travel to Lafayette in October for the Louisiana Gulf Coast Oil Exposition (LAGCOE) Conference seeking relationships with U.S. suppliers of oilfield services, equipment, and technology.”

The WTC report was generated by the World Institute of Strategic Economic Research (WISER) from U.S. Census Bureau data. It covers the exports of both Louisiana-originating products and some major commingled bulk commodities (especially grain and coal) that are produced in other states, shipped abroad from Louisiana's ports, and recorded as Louisiana exports because of the difficulty of identifying the actual states of origin.

"Right now is a good opportunity for Louisiana companies to become involved in exporting or importing goods and services as the U.S. and other markets bottom out and begin to recover,” said Eugene Schreiber, Managing Director of the World Trade Center.

The following three charts summarize the data reported above.

Trade reports that provide information on 32 industry categories of Louisiana exports (NAICS) and 97 commodities (HS) to more than 200 countries worldwide, as well as export totals of other U.S. states, are available on the WTC’s website by clicking the links below.

• Louisiana Exports by Country (NAICS)
• Louisiana Exports by Industry (NAICS)
• Louisiana Exports by Commodity (HS)
• U.S. Exports by State (NAICS)

Louisiana Exports by Country
(US $, NAICS Database)  

 Louisiana Exports by Industry
(US $, NAICS Database) 

U.S. Exports by State
(US $, NAICS Database) 

 Data provided by World Institute for Strategic Economic Research (WISER) from U.S. Census Bureau, Foreign Trade Division

All data Origin of Movement Series.     For full reports, visit the WTC website at www.wtcno.org/tradestats