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UPDATE - EUROPE REGIONAL - JUNE 2009
Safmarine's Regional update - Europe
Update provided by Francis Mottrie, Safmarine's Europe Region Executive - dated June 2009.
The Safmarine Europe region covers more than 40 countries and extends from the UK, the Nordic countries, the Med, Eastern Europe, Central Europe and also includes four North African countries, Egypt, Morocco, Tunisia and Algeria.
• Safmarine's Europe Region is divided into three sub-regions, namely: UK/Ireland (GBR); Southern Europe (SEU); Northern Europe (NEU). See separate regional updates for the GBR, SEU and NEU regions.
Please also refer to the Southern Europe (SEU),Northern Europe (NEU) and Great Britian Area (GBR) updates for additional information.
Europe region - Trade outlook for next three months (June to August 09)
• The global economic recession notwithstanding, the Safmarine Europe Region managed to retain and marginally grow cargo volumes compared to 2008 levels; however, revenues have been negatively impacted as a result of reduced freight rates.
• Dry cargo volumes are down for Q1 2009 compared to same time 2008, but reefer exports were up. Reefer exports to West Africa, India, Pakistan and the Arabian Persian Gulf appear particularly strong and reefer imports have shown marginal growth. Our main imports are from the Far East to Northern Europe, South Africa and Indian Subcontinent.
• Increased unemployment in several European countries has reduced consumer confidence. When confidence drops, consumers spend less which results in reduced demand for goods - and lower shipping volumes. The automotive and chemicals industries appear to be two of the industries which have been particularly impacted by the slowdown, both in terms of reduced volumes and staff retrenchments.
• However, based on figures for March 2009, it appears business and consumer confidence is picking up and we are hoping this is a sign that the market is slowly recovering.
• Export growth from the entire Safmarine Europe Region is expected to be limited in 2009. Overall, we expect imports to perform better than exports. (Exports grew in 2008 versus 2007 - double digit growth was recorded for 2008 exports).
General comment on Safmarine in Europe
• Safmarine Europe is active in approximately 20 trades of which six are dedicated trades ex Europe.
• The growth of Safmarine's Europe region is largely driven by our involvement in the Africa trades.
• The Safmarine Europe region is an export-dominant region.
• European exports are predominantly shipped to the Far East, India/Pakistan/Middle East and West Africa.
• The top 5 European exporting countries (based on last 12 months' performance) are Germany, Netherlands, Belgium, Italy and the UK.
• Europe's top 5 import countries are: UK, Netherlands, Germany, Belgium and Spain.
• E-shipping is widely used by Safmarine's customers in this region. Currently, approximately more than two thirds of Safmarine's customers in this region make use of our e-Commerce services, particularly electronic bookings and shipping instructions available via www.safmarine.com. More than half of all bills of lading issued are currently being printed on our customers' premises.
Shipping services/key trades
• Safmarine's customers in Europe have direct access to 16 shipping services ex Europe - and access to many other services via Safmarine's global shipping network.
• Main export routes are ...
o Europe - West Africa SB
o Europe - South Africa SB
o Europe - Arab Gulf EB
o Intra Europe
• Main import routes are ...
o Far East - North Europe WB
o South Africa - North Europe NB
o Far East - Mediterranean WB
o India Pakistan - Europe WB
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