Logistics is accurate barometer for economic climate

After predicting the UK’s high street slump in May, Hellmann Worldwide Logistics UK suggests that logistics is a fairly accurate barometer for the economic climate.
 

The British Retail Consortium reported a 2.1% decrease in high street sales figures for May, after Hellmann Worldwide Logistics UK saw a 22% drop in import tonnage in April. The logistics operator now believes that that using logistics as a barometer for the economic climate is more accurate than ever.

With import tonnage (ex Asia) a direct reflection of high street activity, and sea freight volumes picking back up throughout May as retailers replenished stock levels, Hellmann UK says that June may be a more positive month.

According to Matthew Marriott, commercial director of Hellmann UK, the logistics industry tends to be the first to feel tremors or even major movements in the economy when it comes to consumer spending and manufacturing output.

"From recent results, it would appear that we are seeing a slow down in imports for airfreight and sea freight, which affects the high street," said Marriott. "May’s increase in volume could either be a requirement of the high street needing to replenish or a genuine uplift. However, as airfreight has stayed flat in May, I would suspect that the ocean freight increase is more likely to be linked to inventory levels than high street demand."