For a company dependent on the health of the global economy, the current slowdown and Donald Trump-inspired volatility doesn’t seem to have hurt logistics giant, Brambles, all that much judging by its third-quarter update yesterday.
Citi updates its US cost monitor, noting lumber prices are recovering. Softwood lumber inflation was 5.6% in January which comes as prices start to cycle the strong decline experienced in the prior corresponding half.
UBS has surveyed European pallet customers who indicate a solid outlook for pooling volumes and the ability for poolers to pass on higher operating costs. CHEP has outperformed competition on price, quality and the availability of pallets.
Citi updates US cost data to account for a reversal in the decline in lumber prices. Transport rate inflation remains modest, which the broker expects will provide a tailwind for costs from the second half.