Global Shippers' Forum assess economic outlook

THE mood at the Global Shippers' Forum held recently in Dubai was one of "cautious optimism" over the economic outlook.

Economic data as presented by Ben Hackett of Hackett Associates Ltd taken alongside shipping data was said to have indicated "a slow recovery being led by Asia," said a statement issued on behalf of the Global Shippers' Forum.

Particularly, as volumes of freight being shipped have increased by 10 per cent in the last three months compared to the previous three months.

Mr Hackett pointed to growing market confidence, inflation being kept under control, fiscal stimulus from governments having a positive effect, a global inventory correction, and early signs that "pent-up" demand from consumers was beginning to be unleashed, it said.

Although not all speakers or delegates were said to have been convinced that consumer confidence had definitely returned, which in itself acted as "an indicator of the nervousness that still exists," the GSF release said.

Mr Hackett also suggested there was "little evidence of freight rates from shipping actually increasing very much, despite the large scale campaign of shipping lines to implement general rate increases and adjustments on their customers. Nevertheless he predicted gradual increases as carriers fought for survival," the statement said.

Furthermore, he warned that if the price of crude oil were to rise much higher than its current level of US$80, it "would act like a brake on economic recovery and might even reverse it."

(Source:www.schednet.com)