Logistics Report Shows Consistent Numbers

A recent report indicates the logistics industry is continuing “its slow, steady expansion.” 

The Logistics Manager’s Index showed 56.4 in August, according to a Sept. 3 release. While that number is lower than July’s 56.5, the index has been at either 55 or 56 for the past four months. 

Digging deeper, inventory levels took a huge jump of 6.1 points from July to August after three straight declining months, which the report suggests was caused by a buildup of inventory after firms ran down what they had. Transportation capacity increased by 5.8 points during the same span, which could be caused by “some smaller carriers or owner-operators ‘getting off the sidelines,’” the report says. 

“The prices are still nowhere near the highs of 2020-2021, but it is a marked shift from the 18 consecutive months of contraction from July 2022-December 2023,” reads the report. “The signs of new life in the freight market, along with anticipation of the traditional jump in demand that follows the Labor Day holiday, are likely causing some of the capacity that had been sidelined over the past two years to re-enter the market, accounting for the mild increase in available capacity.” 

Year-over-year, the index is down 2.3 points from where it sat last August. 

The index score is a combination of eight metrics in the logistics industry and is compiled by a group of researchers from Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University and the University of Nevada, Reno. The Council of Supply Chain Management Professionals also contributed.