The most notable change this month is in transportation prices, which increased by 13.7 points from contracting at 44.1 to expanding at 57.8—their highest level since June 2022.
Transportation prices are now slightly higher than transportation capacity, which is down by 4 points to 57.3. This is a marked change from April when capacity outstripped prices by 17.3-points, an LMI release said.
Though it is encouraging to see expanding transportation prices are mildly above capacity, this has been seen a few times before in the last six months and it has been temporary every time.
The freight recession that began in mid-2022 will not be over until transportation prices are consistent above transportation capacity, LMI noted.
The other significant change in May this year was US inventory levels decreasing from mild growth at 51 to contraction at 46.5. However, inventories did increase for downstream firms (51.6) and contracted (44.2) for upstream ones. Despite this, warehousing utilisation was up by 8.9 points to 64.
The latest LMI report was released by researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The LMI score is a combination of eight unique components that make up the logistics industry: inventory levels and costs; warehousing capacity, utilisation and prices; and transportation capacity, utilisation and prices.
ALCHEMPro News Desk (DS)
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