[230713.ID.LOG] Stifel logistics Confidence Index Inches Forward In Positive Territory

THE Stifel Nicolaus Logistics Confidence Index maintained its positive momentum, increasing from 51.4 in June to 52.1 in July.

There was a widespread belief among respondents to the Stifel survey that there an air-to-sea switch to ocean freight to reduce costs. Others saw less volatility due to fewer supplier problems such as fuel surcharges, pricing issues and more predictability.

European forwarders appeared confident of strong second-half results from improving volumes with an index for logistics expectations up 0.4 points to 58.0.

The index included a monthly survey of international shippers and forwarders that measures freight activity across several European trade lanes. An index value of 50 indicates no change in the volumes currently being experienced for the time of year; above 50 indicates higher volumes.

The freight market showed signs of improvement with an increase of freight-ton kilometres up 0.8 per cent year over year. Despite ongoing issues of overcapacity, the sea freight index increased by 0.7 points to 48.9 for July while the air freight index increased 1.6 points to 43.6 in July.

The slight increases reflected some seasonal rebound in volumes as peak season starts supported by uptick in technology shipments, noted the UK's Transport Intelligence. Samsung has surpassed 20 million in shipments of its latest smartphone launched back in April.

European manufacturing activity is improving and is closer to the 50-level supporting growing consumer confidence reflected in a rise in spending of 1.0 per cent in May and business confidence reaching a 15-month high also, although in negative figures.

Overall uncertainty remains in the air freight sector with 34.3 per cent of respondents certain of market stability in the future, 39.3 per cent were not and 26.2 per cent were unsure.

Source : HKSG.