A weak start to 2010

SIGNS of a recovery in the freight transport market have been confirmed by the latest European Freight Forwarding Index published by Danske Bank. However, the speed of the recovery appears limited.

The index shows that volumes are expected to improve within a couple of months, following a weak start to 2010.

“However the underlying recovery in the freight market is still in place and the index is rising significantly on the leading part,” said Danske Bank analyst Johannes Moller.

“We believe that the main driver in recent movements in the market is that industrial companies have held a longer Christmas holiday than normal. This is exactly the same situation as during summer 2009, when volumes picked up again after the slow summer break,” Mr Moller said.

“We keep our view that the market is still in a recovery mode, but the recovery is slow and gradual.”

The sea freight segment posted the most significant increase. “This is in line with the information we are receiving from industry sources in this segment that tell us rates are rising extremely fast these days as vessels are fully booked. Carriers clearly have the upper hand.

“We believe this is a clear challenge for freight forwarders, who run the risk of being squeezed in this environment of rising rates,” said Mr Moller.
 
Source: Lioyd's Loading List