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Logistics Confidence Index rises, but air more confident than sea freight
THE Air Logistics Confidence Index registered a month-to-month increase of 3.1 points to 56.9 in June, and was up 6.5 points year on year and driven up by higher air freight expectations.
According to World ACD's latest note, growing cross-border e-commerce demand is one reason for air freight growth to be on the up, although it has not stimulated large increases in express air cargo. It is suggested that this is because most e-commerce finds the regular speed of air cargo sufficient, reported the American Journal of Transportation.
Increasing consumer demand in general, particularly in electronics, may be another factor, boosted by higher purchasing power, especially in Asia.
The performance of the Air Freight Logistics Expectations Index in June saw increases across the board, with the strongest performance on the Europe to Asia lane, which rose 7.3 points to 59.8.
The US to Europe lane saw the second-strongest growth, with an improvement of 5.2 points taking it up to 52.2. A gain of 3.4 in the Asia to Europe lane brought that up to 70.1, while a 2.7-point rise in the Europe to US lane resulted in a total of 50.4.
The Sea Freight Index demonstrated a far more mixed picture. In this instance, the present conditions declined, offsetting a slight improvement in expectations.
Vessel space is in much shorter supply than in previous years, following aggressive capacity reduction strategies from the major shipping lines. Following the Europe-Asia capacity crunch in April, shippers will inevitably be nervous, though at least port congestion problems in China now appear to have been resolved.
The Sea Freight Logistics Confidence Index recorded an overall score of 54.9, down 0.6 points against the previous month's score. The result was 7.3 points greater than the score registered in June 2016.
The Sea Freight Logistics Expectations Index totalled 58.0 points, having risen by 0.6 points against the May result. This outcome was chiefly driven by the Europe to Asia lane, which rose by 2.2 points to 55.8.
The Europe to US lane rose by 0.3 to total 54.1 points, while the US to Europe trade increased by 0.1, amounting to 53.8. Together, these results more than offset the 0.5-point decline on the Asia to Europe lane, which nonetheless recorded the highest figure of the four at 66.8.
According to World ACD's latest note, growing cross-border e-commerce demand is one reason for air freight growth to be on the up, although it has not stimulated large increases in express air cargo. It is suggested that this is because most e-commerce finds the regular speed of air cargo sufficient, reported the American Journal of Transportation.
Increasing consumer demand in general, particularly in electronics, may be another factor, boosted by higher purchasing power, especially in Asia.
The performance of the Air Freight Logistics Expectations Index in June saw increases across the board, with the strongest performance on the Europe to Asia lane, which rose 7.3 points to 59.8.
The US to Europe lane saw the second-strongest growth, with an improvement of 5.2 points taking it up to 52.2. A gain of 3.4 in the Asia to Europe lane brought that up to 70.1, while a 2.7-point rise in the Europe to US lane resulted in a total of 50.4.
The Sea Freight Index demonstrated a far more mixed picture. In this instance, the present conditions declined, offsetting a slight improvement in expectations.
Vessel space is in much shorter supply than in previous years, following aggressive capacity reduction strategies from the major shipping lines. Following the Europe-Asia capacity crunch in April, shippers will inevitably be nervous, though at least port congestion problems in China now appear to have been resolved.
The Sea Freight Logistics Confidence Index recorded an overall score of 54.9, down 0.6 points against the previous month's score. The result was 7.3 points greater than the score registered in June 2016.
The Sea Freight Logistics Expectations Index totalled 58.0 points, having risen by 0.6 points against the May result. This outcome was chiefly driven by the Europe to Asia lane, which rose by 2.2 points to 55.8.
The Europe to US lane rose by 0.3 to total 54.1 points, while the US to Europe trade increased by 0.1, amounting to 53.8. Together, these results more than offset the 0.5-point decline on the Asia to Europe lane, which nonetheless recorded the highest figure of the four at 66.8.
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