• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Confidence in Logistics Market Growth Slips, Report Finds

Confidence in Logistics Market Growth Slips, Report Finds

September 25, 2015
Transport Intelligence

Not only has the Index reached its lowest point in some 26 months, it also recorded its fastest pace of decline since June 2014, a 2.6 point loss against the 54.1 recorded in August. September's most concerning figure comes from the Logistics Situation Index - at 49.4, the index indicated an erosion in confidence, likely based on a combination of China's slowing economy, general weakness in emerging markets and tepid global trade.

Perhaps more pressing on the agenda of the industry, though, will be the six-month outlook - a fall of 3.3 points brought the Logistics Expectations Index to 53.6, representing a loss of 9.6 index points in the last four months alone. Indeed, the picture painted by the future-gazing Index gets even worse when expectations for the sea freight market are examined. The loss of 3.5 index points in a month put the Logistics Expectations Index for sea freight at 52.9, a mark some 12.2 points below the confidence levels of September 2014. Combined with a Logistics Situation Index for sea freight of 49.8, it is perhaps little wonder that executives at Maersk Group’s Capital Markets Day suggested that container lines were “operating in an unhealthy industry.”

Airfreight

Air freight volumes fell in July, down marginally by 0.6 percent when measured by FTK, according to IATA. Weak global growth, a turbulent few weeks in the Chinese economy and general weakness in emerging economies were blamed for the fall. The results of this put all but one trade lane below the neutral 50 mark for September. Europe to Asia was hurt the most as it fell 3.7 points to 44.7, while the reverse lane lost 3.1 points as it fell to 47.5. The US to Europe lane also finished below the 50 mark, at 49.6, although this represented a 1.3 point gain over August. Europe to US remained seemingly healthy, at 54.4 for September, although this was 3.4 points lower than the 57.8 mark seen in August. Overall, at 48.9, the Logistics Situation Index for airfreight was 2.4 points down on the previous month, and 4.1 points down compared with September 2014.

The Logistics Expectation Index for airfreight saw even more rapid declines, shedding 3.1 points compared with August to finish at 54.2 as all lanes saw falling confidence. Losing the most was the Asia to Europe lane which declined 4.4 points to 53.8, while the Europe to Asia lane saw a 4.0 point dip to 51.8. A 2.3 point decline meant the US to Europe lane ended September at 52.8, while a loss of 1.8 points had the Europe to US lane ending the month at 58.3.

Sea Freight

A 1.4 point fall in the Logistics Situation Index for sea freight saw the index dip back below the neutral 50 mark after two months of expansion. Just a single lane saw growing confidence in September, the US to Europe lane which rose 0.4 points to 48.2. The Europe to Asia and Asia to Europe lanes both saw a 2.3 point decline to 48.7 and 54.1 respectively. The Europe to US lane fell 0.9 points to 47.6.

All lanes saw declines in September’s Logistics Expectations Index for sea freight, as the overall index was down 3.5 points to 52.9. The Asia to Europe lane fell 5.3 points to 52.8, while the Europe to Asia lane also lost 5.3 points, ending at 52.5. A 2.2 point fall dragged the Europe to US lane down to 55.9, while a loss of 1.0 points meant the US to Europe lane recorded a mark of 50.1 in September.

Source: Transport Intelligence

RELATED CONTENT

RELATED VIDEOS

Air Cargo Logistics Global Logistics Logistics Outsourcing Ocean Transportation Global Trade Management
KEYWORDS Air Cargo air cargo market Global Logistics Global Trade Management international trade Logistics logistics management: global logistics Logistics Outsourcing maritime shipping Ocean Cargo Ocean Transportation Transport Intelligence Transportation Management
  • Related Articles

    Confidence in Air, Ocean Transportation Market Continues to Build, Survey Finds

    Ocean Shipping Overcapacity Continues, Confidence in Airfreight Market Still on Decline

    'New Normal' for Supply Chain Industry is Slow Growth, State of Logistics Report Finds

  • Related Events

    First Mile or Last Mile Freight? Where to Invest Your Technology Focus

Transport Intelligence

Recession To Cause Rise In Logistics-Related Crime

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Vaccine Spat Boosts Support for Brexit; India Bans Remdesivir Export

    Coronavirus
  • Semiconductor

    Why Shortages of a $1 Chip Sparked a Global Economic Crisis

    Coronavirus
  • U.S. Manufacturing

    How COVID-19 Will Cause Permanent Changes in Manufacturing Strategies

    Coronavirus
  • Retailers Seen Closing Thousands of Stores

    Retailers Seen Closing Thousands of Stores Even After Pandemic

    Coronavirus
  • Shipping Costs

    Higher Shipping Costs Are Here to Stay, Sparking Price Increases

    Coronavirus

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

Yang Ming 6 River Systems ArcBest
Armada aThingz BluJay
Burris Logistics DSC Logistics DCSA (Digital Container Shipping Association)
DHL Resilience360 Flash Global Genpact
Geodis GEP GreyOrange
Honeywell Corporate Honeywell Intelligrated Infor
Inmar Kibo Commerce Kinaxis
Logility Magnitude Software MPO
Old Dominion Oliver Wight OpenSky
Paccurate Ports America Purolator
QAD Precision Red Classic Riskmethods
S&H Systems Snapfulfil TGW Systems
Tradepoint Atlantic Transportation Insights Watson Land Company
Westfalia Technologies Workjam
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing