Chalmers braces for significant drop in trade levels, and says it 'will need to remain vigilant' as economic crisis deepens
Supply chain management company Chalmers is bracing for a significant drop in trade levels this year, and says the company ‘will need to remain vigilant’ to protect itself from the economic crisis.
Chalmers Chairman Colin Stubbs has told shareholders to brace for tough times in another example of the effects the worldwide economic downturn is having on the transport and logistics industry.
In his letter, Stubbs says trade levels in the months leading up to June will decline below regular volumes.
“The outlook for the second half [of the financial year] is becoming increasingly lackluster as the beginning of the period sees large container outflows and patchy international trade,” Stubbs says.
“Chalmers will need to remain vigilant to protect its business interests over the near term.”
Big name companies such as Mercedes Benz, DHL Australia and AGS World Transport are part of Chalmers’ client base.
Despite the dour outlook, Stubbs says Chalmers’ recent changes to its Melbourne operations will provide long-term benefits.
“The combination of our Melbourne operations into one effective site, given our recent property purchase, will set a positive outlook for Chalmers over the next few years,” he says.
“It should be noted some additional capital and set up costs will be incurred over the short term as we progress the amalgamation of our business base in Melbourne”.