TELS GLOBAL

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The ifo Business Climate Index fell to 87.0 points in July, after 88.6 points in June.
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TELS GLOBAL Warsaw office: after work...

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Growth in euro zone business activity stalled in July as a tepid expansion in the services sector failed to offset a deeper downturn in manufacturing.
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Euro zone business growth stalls in July HCOB’s preliminary composite Purchasing Managers’ Index, compiled by S&P Global, dropped to 50.1 this month from 50.9 in June, barely above the 50 mark separati...

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According to the reports by the Federal Logistics and Mobility Office (BALM) and Federal Statistical Office (Destatis), truck traffic on the federal toll roads dipped again month-on-month.
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According to S&P Global, June’s Eurozone Manufacturing PMI index fell from 47.3 to 45.8 points. The rate of decline in sub-indices such as new orders and purchasing activity accelerated. Employment in the industrial sector also fell for the thirteenth consecutive month. The downturn affected nearly all Eurozone countries.

The equivalent PMI index for Germany stood at 43.5 in June, down from May’s level of 45.4 points. German companies are facing a double blow: a poor internal economic situation and a reduced number of orders from other European markets and China.

Meanwhile, over in Poland, another major contributor to Europe’s manufacturing industry, the industrial sector continues to struggle. The country’s manufacturing PMI index remains below the neutral level of 50 points for 26 consecutive months.

In June, the PMI for Polish industry was 45 points, consistent with May’s figure and below the average trend of 45.5 points since May 2022. All sub-indices recorded declines, including new orders, production, inventory, purchasing activity, and employment. New orders fell for the twenty-eighth consecutive month, the longest decline on record, although the rate of decline slowed slightly.

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As reported by Linerlytica, global port congestion has reached an 18-month high, with 60% of ships waiting at anchor located in Asia.
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#2025

On International Children's Day, the TELS GLOBAL office in Warsaw organised a joint trip to the zoo for its employees and their families.

The Agency for External Labor Migration of Uzbekistan has signed an agreement with Kreiss, a Latvian transport and logistics company, on arranging the recruitment of truckers to Latvia.

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Freight traffic record set in May on China–Europe rail routes

According to China Railway, a monthly record for freight traffic on China–Europe international rail routes was set in May this year.

Last month, the number of freight trains traveling along these routes rose by 14% year-on-year to 1,724. A total of 186,000 TEU were transported, which is 13% more than a year earlier and a monthly record for China–Europe rail routes.

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Happy Day of the Seafarer! 🌊⚓ Today, we celebrate the remarkable contributions of seafarers worldwide. 🌎 Whether navigating treacherous waters or safeguarding our marine environment, your dedication keeps the maritime sector afloat. 🛳️ Share your safety tips at sea with the hashtag and let’s honor your vital role! Fair winds and following seas! 🌬️🌊

According to the latest WCI Drewry index published on 6 June, the rates on the route from Shanghai to Rotterdam were $ 6,032, up by 14% compared to the previous week. On the China to Genoa route, there was even a 17% increase to $ 6,664 per container.

The increase over the past two months is similar to the explosive rise in container shipping rates during the pandemic. On a year-on-year basis, the current freight rates are up by 315% on the route to Rotterdam and by 214% on the route to Genoa.

With the peak season just starting, demand for transport capacity will remain high.

The mismatch between long-term contract rates and skyrocketing spot rates also encourages shipowners to favour spot cargoes. Many importers complain that shipowners are shunning lower-priced contract cargoes in favour of goods bought at the current high spot rates. The Loadstar quotes a manager of an Asian import company as saying that shipowners only care about their own profits. Small shippers and freight forwarders tend to suffer the most.

Xeneta, a consulting company, wrote in late May that June should bring further rate increases on major routes from Asia to Europe and North America.

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Bankruptcies of freight forwarders in Germany are on the rise.

According to the Federal Statistical Office of Germany, the number of corporate bankruptcies increased by more than 27.6% in January and continued to rise in February and May. According to the Association of Insolvency Administrators and Trustees of Germany (VID), even if it is not yet possible to speak of a wave of bankruptcies, this trend in the transport industry cannot be ignored.

The Federal Association of Logistics and Transportation (BLV-pro) recently warned that the transport industry is facing a significant increase in bankruptcies. The companies affected by the current economic and geopolitical situation are facing tough decisions and are forced to adapt to new realities.

With a reference to the industry insiders, the association estimated that about one-third of toll costs cannot be paid as contractually agreed due to lack of liquidity and that the leading insurers are even ending cooperation with clients due to payment difficulties.

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