Bank survey shows rising oil price is a major concern Worldwide
Rising oil and fuel prices are not just a major concern for UK road hauliers, but for European and Global freight forwarders too, but it hasn’t affected volumes yet, according to one analyst.
According to the latest Danske Bank European Freight Forwarding Index for February, the market continued to perform better than expected.
Danske Bank produces two indices, the forward-looking index asks participants whether they expect volumes to be stronger in the next two months, while the other asks if volumes are stronger now than two months ago.
An index value of over 50 indicates an improvement in volumes, under 50 points to a decline.
Expectations for March and April were in line with normal seasonality, at 67 to 71 respectively, said the bank. The second index improved from 56 in January to 63 last month
Broken down into modes, the most significant pick-up in volumes was in air freight, which recorded an index value of 63, compared with an expected 45. Expectations for the next two months are 55 and 68.
Danske Bank said: “When we talked to participants, they were worried about the recent spike in the oil price.
“Freight forwarders are normally able to pass on changes in the oil price to customers. However, when prices go up quickly – as we see currently – there is a clear risk that the forwarders will have to take some of the pain in the short term.”