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27 January 2017

Logistics index hits 14th negative month

With a general decline in worldwide logistics index, it is likely that this worrying trend will continue into 2017.

The Stifel Logistics Confidence Index has reached its 14th consecutive month of negative confidence, with the numbers suggesting this will continue into 2017.


“As reflected by the performance of the Index, global trade remains at a low ebb, as it has for some time,” the Ti-composed Stifel Logistics Confidence Index said. While the ocean shipping industry continues to struggle with its overcapacity issue the one bright spot at present is the performance of air freight, it noted.


While IATA has been stressing that the long-term condition of the industry is not good, the organisation did report that freight volumes increased by 6.1 per cent year-on-year (measured in FTKs) in September, exceeding a capacity increase of 4.7 per cent over the same timeframe. This tallies with the results of the Situational Index for Air Freight; The one bright spot in the Stifel Logistics Confidence Index this month, which recorded an improvement in the present market.


For November, the Air Freight Index registered 49.3, having fallen by 0.6 points against the previous month’s score of 49.9. Stacked against the results for prior years, the Index score was 0.4 points greater than in November 2015, but 7.6 points below the total measured in November 2014.


Change in the Air Freight Logistics Situation Index was positive, with an overall month-on-month gain of 0.7 points to 47.4 recorded. Of the lanes that made up this score, Europe to Asia was flat month-on-month, with an unchanged total of 39.3, but this was the exceptional result.


Europe to US improved by 0.4 points to reach 48.4 in November, while the Asia to Europe and US to Europe lanes each noted a month-on-month points gain of 1.2, which took them to 48.4 and 53.5, respectively.


The Air Freight Logistics Expectations Index remained above the neutral 50 point mark, but fell by 1.9 points month-on-month to 51.1, offsetting the gains noted in the Present Situation Index. US to Europe was the sole lane to improve month-on-month, with a 0.1 point gain to 56.1 for November.


The Europe to Asia lane declined by 0.9 points to 44.4. Meanwhile, Asia to Europe noted the deepest decline of the lanes, falling by 3.6 points to 50.9. Similarly, Europe to US lost 3.0 points, totaling 53.3.


Source: http://www.logasiamag.com/2016/12/logistics-index-hits-14th-negative-month/