2010 starts weak, but will improve

Freight forwarders are reporting a slow start to 2010, but expectations for the future continue to improve, according to Danske Bank.

In its January survey of more than150 freight forwarding companies, Danske Bank found that 2010 had started on a “weak note” because industrial companies had enjoyed a longer Christmas holiday than usual.

However the underlying recovery in the freight market was still in place, it added.

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

“The uptick in sentiment is most significant within the sea freight sector. Industry sources tell us rates are rising extremely fast these days, as vessels are fully booked and carriers clearly have the upper hand.”

Adjusted for seasonality, 51% of companies surveyed expected higher volumes in February and 58% in March, compared with two months ago.

Meanwhile, 50% of companies saw volumes increase in January and 55% in December.

http://www.ifw-net.com/freightpubs/ifw/indexarticle.htm?artid=20017743986