[100911.EN.LOG] Volumes Remain Weak For European Forwarders

European freight forwarders continued to experience weak volumes in August, suggests Danske Bank's 'European Freight Forwarding Index'.

The index, at 46, was up from 43 in July, but still indicates a contraction in the volume of goods handled by forwarders compared with two months ago (see Ti Dashboard – Freight Forwarding Index). Expectations remained flat with participants predicting a slight increase in the volume of goods in the coming months.

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

The survey indicated a rebound in demand for the road and sea freight markets. The index value for road freight increased to 46, from 40 in July. However, it remains below the significant 50 level, indicating the volume of goods handled by road transport is lower than two months ago; though the rate of contraction is less than in July.

For sea freight the index indicates unchanged volumes compared with volumes in June. Less positive developments were seen by European air forwarders (see Ti Dashboard – Freight Forwarding Index: Europe (by mode)). The index, at 33, hit an all-time low, signifying considerably lower volumes of goods handled in August. However, expectations remain positive, pointing towards growth in demand over the next two months.

The breakdown of the index by country showed a varied picture. Following a considerable decline in July, the Benelux area continued to experience particularly weak demand, causing volumes of goods handled to plummet further in August. Expectations for the next two months also saw negative sentiments, with the index value down from 50 to 19.

Eastern Europe and Germany also saw declines in demand. In contrast, UK and Swiss forwarders saw volumes pick up in August. However, expectations for the UK forwarding market fell, while Switzerland expects to see more optimistic developments.

Source : EFT, 09.09.11 (Content provided in partnership with Transport Intelligence).