We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Logistics economy grew in February

Logistics economy grew in February

Strong demand for services continues as supply chains struggle with inventory accumulation, capacity constraints, and rising prices, LMI report shows.

feb22-lmi.png
March 1, 2022
Victoria Kickham
No Comments

The logistics economy continued its strong rate of expansion in February, fueled by demand for warehousing and transportation services, rising prices, and high inventory levels. The industry saw its 13th straight month of “significant growth” according to researchers for the monthly Logistics Manager’s Index (LMI) report, released today.

The LMI rose 3.3 points from January to a reading of 75.2, the second highest reading in the index’s six-year history and well above the 50-point mark indicating expansion across the industry. The logistics economy in February was characterized by unseasonably high inventory levels, continued capacity constraint across transportation and warehousing markets, and higher costs throughout the supply chain.

“Like January, this month’s growth is driven by rapid growth in inventory levels, which are up 9.1 points to 80.2—crossing the 80.0 threshold for the first time and shattering the previous record of 72.6,” the LMI researchers wrote. “This is a complete 180 from the Fall of 2021, when firms struggled to build up inventories. Now it seems that a combination of over-ordering to avoid shortages, late-arriving goods due to supply chain congestion, and a softening of consumer spending has created a logjam.”

Geopolitical issues are compounding the problem, most notably Russia’s invasion of Ukraine, which is accelerating already high fuel prices and creating supply chain delays as carriers re-route air cargo between Europe and Asia due to airspace closures in the region, the researchers also said. Slowdowns at the U.S./Canada border due to protests across Canada were also a factor during the month, pushing up prices to ship goods, they said.

Logistics managers surveyed for the February report said they expect current conditions to hold. The LMI’s Future Conditions Index came in at a reading of 70, down slightly from January, but still indicating expansion over the next 12 months. Logistics managers said they expect capacity to remain tight, especially in warehousing, and industry costs and prices to remain high.

The LMI tracks logistics industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).

Visit the LMI website to participate in the monthly survey.

Logistics
KEYWORDS LMI - Logistics Managers' Index
  • Related Articles

    Logistics economy grew in March

    Logistics economy expanded in September

    Logistics industry growth slows in February

Victoria kickham headshot
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.

Recent Articles by Victoria Kickham

Transportation report: Rising fuel prices will drive higher costs

Logistics economy grew in March

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing