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.
  • ::COVID-19 COVERAGE::
  • 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
    • 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
    • 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 industry growth slows in February

    Logistics industry expansion continues 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

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

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

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing