Latest news from Heavy Lift & Project Forwarding International Magazine

Logistics confidence in the UK drops

Optimism in the UK’s logistics industry has fallen to its lowest level on record, according to the latest Logistics Confidence Index from Barclays and accountancy and business advisory firm BDO.

Challenging business conditions and Brexit fears are contributing to the sector’s slump in confidence, with an overall reading of 49.7, down from 52.6 in the second half of 2018. This is the first time confidence has dipped below the 50 mark since the index’s inception in 2012. According to Barclays and BDO, it indicates that overall the sector is more pessimistic than optimistic about the state of the market.

Respondents indicated that plans for the future are being delayed as a result of Brexit uncertainty, with almost half (47 percent) making lower levels of investment or placing decisions on hold due to Brexit-related issues.

According to the report, despite an increase in demand for some operators as a result of their customers’ Brexit planning, the industry is clear in its opposition to a no-deal departure from the EU.

Meanwhile, 43 percent of businesses indicated that driver and skills shortages are the most important issues facing them this year.

Some respondents cited automation as a potential solution to skills shortages but, while there is an appetite for greater automation, responses suggest that widespread adoption is still some way off.

There are some elements of the Logistics Confidence Index that give more cause for optimism. The majority of businesses still expect to post an increase in turnover and profit over the next year. This should feed through to increased investment, with more than a third of firms ‘very likely’ to make significant capital expenditure over the next 12 months.

Philip Bird, transport and logistics partner at BDO, said: “Businesses in the sector are battling with challenges both at home and abroad. In addition to Brexit, a slowdown in key global economies as well as ongoing USA-China trade wars are causing increased uncertainty and pushing the confidence index into negative territory.”

Richard Smith, head of transport and logistics at Barclays Corporate Banking, added: “We do not need to panic – the industry is extremely resilient and the index’s dip into negative territory is marginal and comes after a long run of optimistic results. Logistics providers are doing their bit by investing in new technology and sustainability projects, but are dependent on the external environment being trade friendly to help them achieve growth and make a positive contribution to the UK economy.”

barclays.com

www.bdo.co.uk

Heavy Lift | News

Charter rates remain steady  thumbnail image

Charter rates remain steady 

February 18 - Time charter rates in the multipurpose shipping sector have remained steady over the last month, according to shipbroker Toepfer Transport. 
Views: 895
Logistics industry braces for a global slowdown thumbnail image

Logistics industry braces for a global slowdown

February 13 - The majority of logistics executives surveyed in Agility’s 2020 Emerging Markets Index expect a recession in the next 12 months, amid concerns about downward pressure on global trade volumes.
Views: 1688
Decarbonising shipping comes at a USD1 tn cost thumbnail image

Decarbonising shipping comes at a USD1 tn cost

January 22 - At least USD1 trillion of capital investment in land-based and ship-related infrastructure is required to reach the 2050 goal of reducing shipping’s greenhouse gas emissions by 50 percent of 2008 levels.
Views: 1764
Charter rates fall in January  thumbnail image

Charter rates fall in January 

January 17 - Time charter rates in the multipurpose shipping sector have dropped over the last month, according to shipbroker Toepfer Transport.
Views: 2054

Heavy Lift Across The World

Discover heavy lift and project logistics industry news from around the world by region.