European forwarders experience modest growth in volumes

The European Freight Forwarding sector saw modest growth in September, according to Danske Bank’s Freight Forwarding Index, which was up to 53, from 46 in August.

At just above 50, the index indicates a slight expansion in the volumes of goods handled by freight forwarders (see Ti Dashboard: Freight Forwarding Index: Europe). In July, participants had anticipated that the index would reach 57 for September; therefore the index fell slightly below expectations.

The index, which surveys freight forwarding companies, measures variations in actual volumes against volumes handled two months ago, as well as expectations of volumes of goods over the next two months. The index uses a scale between 0 and 100, with values below 50 indicating a contraction in demand.

When asked about the development of volumes over the next two months, survey participants‘ expectations declined to 54 for November, from 56 for October, with forwarders expecting reasonably flat volumes in the coming months. As economic recovery is becoming more uncertain, Eurozone manufacturing PMI hit a 25-month low in September and trade growth forecasts for 2011 have been revised downwards; therefore the outlook for the forwarding sector is becoming less positive.

Both sea and road freight saw an increase in current volumes handled in September, indicating an increase in demand. For road freight the index was up to 59 in September from 46 in August, while sea freight was up to 58, from 51. Expectations for both modes remained flat, with moderate growth forecast for the next two months. The air freight index also improved; although at 47, it still indicates lower volumes handled in September than two months ago. Future demand is also less than optimistic, with declining volumes predicted.

The country breakdown for September showed a varied picture. Germany saw a significant increase in current volumes (42 in August to 69 in September), as well as expectations. In the Benelux region, the index soared up, although at 44, it still indicates lower volumes for September. In the UK, volumes remained almost flat and expectations declined, while Switzerland saw a significant fall in both current volumes (57 in August to 40 in September) and expectations.

Quelle: eyefortransport
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