Sentiment in the logistics sector

Although the general economic conditions for the logistics sector are currently
underwhelming, industry sentiment improved for the second time in a row in the
third quarter of 2016. The Logistics Indicator, which is compiled by the Kiel
Institute for the World Economy (IfW) on behalf of the Global Supply Chain
Network (BVL), increased in the second and third quarters following four
decreases in the previous quarters. This is largely in line with the most recent
development of turnover in the transportation and storage sector.

In the second quarter, seasonally adjusted nominal turnover rose by 1.7% compared to the
previous quarter; turnover had been roughly stagnant in the three quarters
before that. All told, we expect nominal turnover in the transportation and
storage sector to increase by around 1% a year in 2016 and 2017. Growth
would therefore remain below the long-term average. Higher growth rates are
being hindered by a sluggish rise in industrial production, lacklustre investment
activity and the weak performance of foreign trade. However, the sector
currently appears unlikely to slip into recession.

The industry will continue to be
characterised by intense competitive pressure, especially for simple logistics
services.