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Transport limitations could stall US export recovery

Limited transportation capacity is creating a "solid obstacle" to the vision of an export-led recovery for the US manufacturing sector, a new report warns.

The Journal of Commerce (JoC) reports that there are significant barriers facing government and private business in the effort to maximise export potential.

The publication pointed out that: "Optimism is high and plans are in place to promote exports - a rise in which could help rectify the huge US trade imbalance and ensure stability of the country's external debt, stimulate employment and fuel domestic industrial recovery.

"A National Export Initiative proposed by Pres. Obama would double exports through aggressive trade promotion, liberalising export controls and prying open overseas markets that discourage imports through non-tariff barriers."

However, JoC goes on to warn that optimism alone will not be enough to overcome the barriers currently throttling US export growth: "There is simply not enough vessel capacity or equipment to meet resurging overseas demand. Exporter frustration has even prompted recent charges at a congressional hearing that carriers are acting as a cartel threatening the competitive position of U.S. exporters."