Strength of Last Year's Logistics Confidence Index Bodes Well for 2014
Back to What We Think
[caption id="" align="alignright" width="320"] union pacific freight train (Photo credit: jefzila)[/caption] The Logistics Confidence Index was up not only for December 2013, but for the year as a whole. Rising to 57.5 last month, the year-on-year comparison with this point in 2013 marks almost a 10 point increase in 12 months for air and sea freight combined. With the indicative index having jumped above the psychological barrier of 50 early in 2013, the trend has been steadily upwards despite economic headwinds and political uncertainty across the globe. Stronger outlooks in both the U.S. and Europe towards the latter half of the year produced a particularly notable spike. That momentum looks to be carried into the New Year and bodes well for businesses across the board, indicating a healthy supply chain outlook with swelling consumer demand to fuel it further still. Digging down into various forms of freight, container shipments are merely steady but the increased adoption of regional warehousing and multi-modal transport options demonstrates the adaptive nature of supply chains in the current economic climate. Organizations are embracing the variety on offer from both international and local sourcing, - as we examined in our 'Made in the USA' feature last month - partially for cost reasons but also to shield their supply chain from disruption in any one area. Overall there is sufficient data to suggest that the outlook remains cautiously bullish for the year ahead. We look forward to taking up the challenges and opportunities of 2014 to better serve the order fulfillment and distribution requirements of our customers. Let's keep that confidence index on the rise!
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