The US logistics manager's index was 56.4 in August, down slightly from July's 56.5. The overall index has increased for nine months in a row.
August inventory levels—up by 6.1 points to 55.7—broke the contraction streak seen over the previous three months.
Transportation prices read in at 61.6, implying prices have risen in seven of the last eight months.
The US logistics manager’s index (LMI) was 56.4 in August this year, down slightly from July’s reading of 56.5. The overall index has now increased for nine consecutive months.
The index has been remarkably consistent, reading in at 55.6, 55.3, 56.5 and 56.4 over the last four months as the logistics industry has continued its slow, steady expansion, an official release from the agency said.
Researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, University of Nevada, Reno, and the Council of Supply Chain Management Professionals (CSCMP) issued the LMI report recently.
August inventory levels, which were up by 6.1 points to 55.7, broke the streak of contraction that was observed over the previous three months. This suggests that after running inventories down, firms are building them back up again in anticipation of the fourth quarter (Q4) this year, the release noted.
This also suggests a return to traditional patterns of seasonality that have not been seen since pre-COVID times.
This build-up of inventories is somewhat tempered by increases in both warehousing capacity (plus 5 points) and transportation capacity (plus 5.8 points).
Transportation prices read in at 61.6, implying prices have increased in seven of the last eight months as well as in the last four consecutively. 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 till December 2023.
The signs of new life in the freight market, along with anticipation of the traditional jump in demand that follows the Labour 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, the release said.
Warehousing capacity increased in the month, at least partly because downstream inventory levels were still decreasing at 46.3. Warehousing prices were still up (plus 2.8) to 63.1, with more of the cost increase coming from downstream respondents.
Respondents continued to be largely optimistic about the future of the logistics industry, predicting an overall growth rate of 62.4 which is up slightly (plus 0.4) from July’s future prediction of 62 and is 7 points higher than the current reading of 55.4.
The LMI score is a combination of eight unique components that make up the logistics industry, including: inventory levels and costs, warehousing capacity, utilisation and prices, and transportation capacity, utilisation and prices. Any reading above 50 indicates that logistics is expanding; a reading below that is indicative of a shrinking logistics industry.
Source: https://www.fibre2fashion.com/news/textiles-logistics-news/us-aug-logistics-manager-s-index-slightly-down-from-jul-reading-297815-newsdetails.htm
Denmark's DSV has agreed to buy Schenker, the logistics arm of German state rail operator Deutsche Bahn, for 14.3 billion euros
“China’s air cargo market with Latin America is taking off” then asks the question as to whether shippers should be concerned about the peak season ahead?
The supply chain resilience pact signed by the UK, US and Australia is aimed at addressing risks and strengthening cooperation between the superpowers
The air cargo industry is flying headlong into its strongest ever peak season as booming e-commerce demand will combine with online shopping promotions this fall
Worldwide average air cargo spot rates rose to a new 2024 high in the first full week of September, boosted by a surge in tonnages and spot rates from Asia Pacific origins
Worldwide air cargo demand and pricing have stayed strong throughout August, with tonnages up +10%, year on year (YoY), and rates +12% above last year’s levels
As the industry heads into the peak season for airfreight, cargo owners are facing challenges to securing capacity out of Asia.
Air cargo spot rates were sky high in August as demand and capacity imbalances continued, flanked by additional e-commerce and Red Sea shipping disruption-related demand.
China is bracing for the arrival of ‘Super Typhoon’ Yagi, expected to be the strongest storm to hit the country in nearly a decade.
ALS