Agility’s 2018 outlook
Agility has published its outlook for 2018 which gives an overview that actually takes into consideration, markets that are technically past the emerging designation.
The ‘2018 Emerging Markets Logistics Index’ report states that airfreight coverage confirms growth where most observers expected it to be, but also delivers a few surprises, such as a 30.8 percent volume increase in U.S.-to-Russia airfreight. Airfreight from socalled ‘emerging economies’ saw a significant increase, as well, during 2017, with the following five countries leading the charge regarding cargo shipments to and from the European Union: Cambodia (+44.1 percent), Indonesia (+38.6 percent), Sri Lanka (+34.3 percent), Ghana (+32.6 percent) and Philippines (+25.0 percent).
Entering a new year, Agility said that, “The global economy is clearly in an upswing; some may even call it a boom.” The Kuwaiti 3PL pointed to healthy prospects in the U.S., the Eurozone and other developed markets, concluding that this favourable international backdrop is particularly helpful for emerging export market. “Nevertheless, the global economy remains vulnerable to a range of downside risks,” the 3PL warned. “These include a faster and greater tightening of global financial conditions, which may well transpire if the U.S. Federal Reserve increases its base rate sooner than expected or by more than anticipated. Possible financial turmoil may also arise if China fails to counter risks associated with its expansion of credit. If a shock occurs that causes a growth slowdown in China, this would have adverse consequences for other economies through weaker trade, commodity prices and confidence.