Improving signs for the overall airfreight market are growing as the combined airfreight logistics confidence index increased for the first time in four months.

The Stifel Logistics Confidence Index entered 2014 on a positive note. Despite a month-to-month 0.9 point decline in the overall Index reading to 56.6, the Logistics Confidence Index has remained above the 50-level for 12 months, meaning the market continues to exhibit a healthy confidence in air and sea freight forwarding. To get a better view of global air and ocean trade, Stifel has partnered with Transport Intelligence to create the Stifel Logistics Confidence Index (LCI), a monthly survey of international shippers and forwarders that measures freight activity across several European-based trade lanes.

Increasing confidence in the outlook for the transport and logistics sector helped raise the overall Stifel Logistics Confidence Index 0.6 points to 53.0. This is the eighth consecutive month the index registered above the 50 threshold, indicating improving conditions in the overall European freight forwarding market.

The global contract logistics market grew by 3.4 percent in 2012 to €159.35bn ($213bn), according to Transport Intelligence's Global Contract Logistics 2013 report. However, this figure hides an increasing divergence in the performance of regional markets, with growth in emerging markets much higher than those in Europe or North America.

The Stifel Logistics Confidence Index continued its downward trend in May as it fell for the second consecutive month. Compiled by Transport Intelligence, the overall index, which combines the current situation with future expectations, was down 0.8 points from April to 50.7 in May and was 1.3 points lower compared with the same month in 2012. Yet, even with deteriorating confidence, the Logistics Confidence Index registered above the 50 threshold, indicating growth, for the fourth consecutive month. An index value of 50 indicates no change in the volumes currently being experienced for the time of year; above 50 indicates higher volumes, while below 50 indicates lower volumes.

Although mail, express and logistics companies are benefiting from the growth of e-commerce in Europe, to date few service providers have developed the sophisticated services which e-retailers demand.

The road freight market in Europe has been particularly subdued over the past few months, according to the Freightex European Road Freight Rate Index, compiled by Transport Intelligence. However, the market experienced short bursts of volatility, a strange situation which is largely attributed of the recession across much of the continent.