Archives



Air, Business, Freight News, Logistics, Road, Sea


Forwarders see future strength

[ March 20, 2013   //   ]

Freight forwarders confidence in a market turnaround increased for the fifth consecutive month in March according to the latest survey undertaken by Transport Intelligence. The Stifel Logistics Confidence Index was up 0.4 points to 52.5 in March compared with 52.1 in February.

In terms of the present logistics situation, the index did register a marginal decline of 0.3 index points to 45.4 from 45.7 in February. Since beginning in March 2012, the index has remained below the 50 threshold, indicating weaker volumes relative to those expected for the time of year; a reflection of the difficult economic conditions.

But despite being slightly less optimistic about the current environment, forwarders’ expectations for the next six months improved.

Ti economist, Lucy Palmer, commented: “Regardless of a decline in the current index, forwarders’ confidence surrounding future market conditions strengthened further. This seems surprising; however it could be that the fall back in the index for March was a one-off resulting from manufacturer closures for the Chinese New Year. Results over the next couple of months will tell us whether or not this is the case.”

In a one-off question this month, Ti asked survey participants if there was a visible trend towards increased consolidation (through mergers and acquisitions). Over three quarters of survey participants (76%) acknowledged such a trend; only 14% did not. The remaining 10% were ‘unsure’.

The Stifel Logistics Confidence Index is generated from an extensive survey of global logistics professionals, asked to provide their views on current levels of volumes in the industry and their expectations for six months’ time. An index value of 50 indicates no change in the volumes currently being experienced for the time of year; above 50 indicates higher volumes, while below 50 indicates lower volumes.

Tags: ,