The present business models being employed by e-retailers and their shipping partners are becoming increasingly unsustainable, according to a report from Transport Intelligence, a research and analysis firm focusing on the global logistics industry.
Still growing, with Europe forecast to grow by 6 percent and North America by 5 percent, automotive logistics offers growth prospects but only for those logistics service providers who can exploit change. This is one of the main conclusions of the latest report from Transport Intelligence, "Global Automotive Logistics 2014".
Uncertainty in the global market continues as the latest Stifel Logistics Confidence Index indicates a dip of 0.4 points in the overall measurement to 55.7. While the present situation remained positive, gaining 1.2 points from July to 53.5, the expected situation for the next six months stumbled 2.0 points to 57.9. This decline was particularly noticeable within airfreight expectations, which declined 3.3 points to 54.7. The sea freight expectation component declined 0.7 points to 61.0.
Declining in value by 3.3 percent from 2012, the freight forwarding market is facing major challenges as it fights to stay viable in a changing global environment. This is one of the main conclusions of the latest report from Transport Intelligence, Global Freight Forwarding 2014.
The Stifel Logistics Confidence Index for July appears to mirror an uncertain economic environment. Since February of this year, the overall Index has increased one month and then declined the next reaching its high so far this year in May at 57.9. For the current month, the index is up 0.9 points over June to 56.1.
A lack of certainty appears to be the case within the freight forwarding market as momentum fails to take hold. In the latest findings, the Stifel Logistics Confidence Index slipped 2.7 points to 55.2. While still above the important 50-level, too many questions remain unanswered – will a strike be averted at the U.S. West Coast ports, what will happen within the sea freight market now that P3 alliance has collapsed? Is economic growth really slowing?
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.
Although the overall freight forwarding market grew by 3.1 percent to $125.85bn in 2012, Transport Intelligence's report, Global Freight Forwarding 2013, suggests this figure is misleading as the positive growth was entirely attributed to the sea freight sector.