Business confidence in T&L

The BNZ business survey was out this week. The survey contains quotes from people in various industries. I found the transport and storage quotes interesting and have posted them below:

  • Road Transport. Seasonal activities are strong but general freight has eased noticeably.
  • Transport/Storage — Domestic removals and international arrivals significantly down but everything else same or even up on last year.
  • Road Transport. Lower running costs (Fuel)and good availability of experienced drivers. Outlook positive.
  • Transport import export containers drying up Transport Industry (Freight Forwarding/Logistics): Freight volumes are down due to the state of the economy; companies are sending less freight. Our customers are seeking lower rates to all destinations, which is a challenge for us to offer. However, we see the current economic climate as an opportunity to increase our market share by claiming accounts from the smaller companies who are looking to go into receivership.
  • Transport (Courier) Industry. After a quiet January February was a reasonable month. Still behind on budget but there still seems to be a reasonable amount of volume in the network. Quite a bit of pressure from competitors slashing rates which is a little self defeating.
  • Transport . We transport food and associated products. Probably as safe a bet as any at the moment. Modest downturn in business coupled with reduced operating expenses. Wage expectation has backed off with a number of driver layoffs in the industry.
  • Public transport business generally picks up in an economic downturn. We are starting to see that now.
  • We import tyres from overseas and sell directly to Truckies. Buyers are definitely more cautious, but having said that our business has picked up because people have to watch every cent and are shopping around for best deals. We have cut the middle man out. The hardest is the falling NZ dollar, needing more and more available cash flow for purchases inwards.
  • Transport – as we carry food and food ingredients plus seasonal items/fish and stone fruit – a comparison is difficult but it feels like it is worse than this time last year, and most people are predicting it will get worse. If oil kicks up in this period there will be casualties in many parts of the transport industry.