Freight forwarder index shows positive signs for Europe

Danske Bank's latest freight forwarder index suggests that a gradual recovery is in sight, at least in Europe.

Last week's index, whichmonitors freight forward volumes, rose above 50 for the first time since being launched four months ago, indicating that freight forwarders are handling more volumes than they did two months ago.

Copenhagen-based transportation equity analyst Johannes Mller said: We see this as a clear sign that the recovery in the freight markets has begun.

On the expected situation, the index remains around 60 and our interpretation of this is that we will see a gradual recovery of volumes during Q2.

There will be no sudden major pickup in volumes, but it is more likely to be a gradual recovery.

More than 120 freight forwarders across continental Europe say that they now have more seasonally adjusted volumes in their business than they had two months ago.

Danske Bank said that volumes were significantly below last year but nevertheless it is very positive that we see a pickup in volumes.

We see this pickup as an indication that de-stocking has come to an end and goods are now starting to move in line with end-user demand.

Respondents were asked two questions: what volume of goods does your company handle today compared with two months ago; and how do you expect volumes of goods to develop over the next two months.

The answers were adjusted for normal seasonality.