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Freight industry indicators show growth

Freight business indicators have revealed that the industry is improving across a number of sector. 

According to a study by the Institute for Supply Management, US shipping improved from 54.9% in December 2009 by 3.5% to 58.4% in January 2010. A figure which is greater than 50% indicates growth in this survey.  Chinese statistics revealed a slight drop of 0.8% to 55.8%. If its index remains above 50% next month it will mean that the industry has grown constantly for an entire year. An index by the HSBC China Manufacturing Purchasing Managers revealed 10 consecutive months of industry growth. 

New orders and exports reached a five-year high in December and HSBC reportedly predicted where the industry’s future lies by relocated its CEO’s office CEO to Hong Kong and revealing plans to make a listing on the Shanghai Exchange.

Back in the US, it has been suggested that transport is the industry to be involved in post-recession, as Berkshire Hathaway Corporation’s buying of rail freight company Burlington Northern Santa Fe illustrates. Freight growth in Europe seems to be slower because many have a lack of confidence in the major markets. The Greek debt was seen to be a major shackle on future development. However, the European Commission is expected to issue a statement of support for the Greek government’s cut proposals to reduce the national deficit tomorrow. The Greek government hope to slash the debt by 10% in the next three years. 

British growth appears to be good but there are concerns that this growth could see the pound rise against the Euro, which would mean the country would face stiffer competition from its European counterparts.

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