Debt crisis a blow to freight confidence
Bank survey reveals volumes down last month
Confidence among European freight forwarders weakened last month, because of the euro debt crisis, according to the latest European freight forwarding index from Danske Bank.
The index for May volumes fell from 78 in April to 70, while volume expectations for June show a slight increase to 73 followed by a steep drop to 64 in July.
“The index drop comes from road and sea, whereas air freight is actually up,” says the report. “However, this is because air freight had a weak April due to the volcanic ash situation.”
Despite the decline in confidence, the freight market remains strong, but not as strong as the index predicted two months ago.
“The index still shows growth in confidence among European freight forwarders, so it is too early to be sceptical about the situation.
“One of the positive elements in the current situation is the support to export from the weak euro exchange rate,” said Dansk Bank.
Answers from participants are translated into an index value of between 0 and 100. Values above 50 indicate volume expansion.
The index for May volumes fell from 78 in April to 70, while volume expectations for June show a slight increase to 73 followed by a steep drop to 64 in July.
“The index drop comes from road and sea, whereas air freight is actually up,” says the report. “However, this is because air freight had a weak April due to the volcanic ash situation.”
Despite the decline in confidence, the freight market remains strong, but not as strong as the index predicted two months ago.
“The index still shows growth in confidence among European freight forwarders, so it is too early to be sceptical about the situation.
“One of the positive elements in the current situation is the support to export from the weak euro exchange rate,” said Dansk Bank.
Answers from participants are translated into an index value of between 0 and 100. Values above 50 indicate volume expansion.
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