Differing views on industry health

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Wednesday, 28 July 2010

Both UPS and FedEx - and many others in the industry - recently have claimed they are confident of growth in the freight business, but another report this week says ex-Asia rates to Europe have tumbled.

"Resumed growth in industrial production and global trade is increasing demand for our transportation services,” said FedEx's Alan Graf Jr. FedEx swung to a Q2 profit compared to a loss last year, and its revenues grew 20 per cent.

UPS also reported strong results in its latest quarter.

But a report in Freight and Logistics news says air freight rates from Asia to Europe - according to a cargo agent in Hong Kong and other industry sources in China - have fallen so far this month they are now barely “nominal”.

Another said all-in ad hoc freight rates into Europe from North Asia were at US$3 per kg last week.