The latest data on transportation metrics shows a decline in December, with capacity increasing and prices dropping. Supply chain executives remain cautiously optimistic for the new year. The Logistics Managers’ Index (LMI) reported a 63.3 reading for transportation capacity, indicating growth, while transportation utilization also saw an increase. However, transportation prices continued to decline, attributed to lower fuel prices.
Looking ahead, survey respondents predict changes in transportation capacity and prices over the next year, signaling a potential shift from the recent freight recession. The overall LMI moved back into expansion territory, driven by increases in warehousing components. Retailers are facing tight warehouse space, while manufacturers and wholesalers are expected to see rising warehouse prices in the coming year.
Inventory levels continued to decline, reflecting a trend towards just-in-time inventory practices. The report noted that post-pandemic inventory reduction measures may lead to more normal seasonal shipping patterns in the future. Overall, the forward-looking prediction for the index suggests a positive outlook for the future. The LMI is a collaborative effort among several universities and supply chain management professionals.
