THE growth rate of the Stifel Logistics Confidence Index, compiled by UK's Transport Intelligence, slowed for the month of August with an increase of 0.3 points from 52.1 in July to 52.4 in August.

Despite this, it's the seventh consecutive month the index registered above the 50 threshold, indicating slow but improving conditions in the overall European freight forwarding market.

The air freight market continues to show improvements, albeit based on comparisons with 2012 when the market was in steep decline. This is supported by IATA's June data, which indicates European airlines may have turned a corner.

From May to June, global freight volumes increased by 0.8 per cent. A quarter of that improvement was because European airlines saw a 0.9 per cent improvement in demand compared to May, and a 2.6 per cent increase compared to June 2012.

The index indicates optimism has increased among European freight forwarders in regard to the next six months for air freight, in particular the lanes from Asia and US to Europe. This may indicate the overall European economy is indeed picking up as businesses and consumers possibly begin to increase spending.

While the overall sea freight index noted a 0.3 rise to 54.5, the present situation, however, noted declines in sentiment for all but one lane, from Asia to Europe.

This may be due to shipping lines recently implementing freight rate hikes. The outlook for the next six months was much more positive, indicating perhaps a brighter holiday season. The Europe-US trade lanes, in particular, recorded the strongest gains.

The Logistics Confidence Index shows the outlook for the next six months is positive and European freight forwarders appear to be expecting improved market conditions and volume growth.