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 industry growth slows in April

Logistics industry growth slows in April

Monthly Logistics Manager’s Index fell more than 6 points compared to March as transportation capacity crunch eases, researchers said.

april22-lmi.png
May 3, 2022
Victoria Kickham
No Comments

The logistics economy continued to grow in April, although at its slowest pace in 14 months, driven by a shift in transportation sector metrics, according to the latest Logistics Manger’s Index (LMI) report, released today.

The LMI registered 69.7 in April, down 6.5 points compared to March’s all-time high reading of 75.2 and falling below the 70-point mark for the first time since January 2021. An LMI reading above 50 indicates industry expansion, and a reading below 50 indicates contraction. Sustained readings above 70 indicate considerable growth in the industry.

LMI researchers said the shift continues a softening that began in late March as transportation capacity began to open up in some areas. That trend continued in April, as transportation capacity expanded for the first time in nearly two years, bumping up more than 11 points to a reading of 56.9. At the same time, growth in transportation pricing eased, falling nearly 16 points compared to March.

The monthly results may indicate a market shift toward more sustainable, moderate levels of growth, according to LMI researcher Zac Rogers, assistant professor of supply chain management at Colorado State University.

“In general, what we’re really seeing is a move toward moderation. We’re actually slowing down to a sustainable speed,” Rogers said, adding that the lengthy contraction in transportation capacity was unsustainable, and that a market shift was inevitable. “The last time [transportation capacity] grew was May of 2020. That’s almost two years of contraction in capacity. And now, we again have growth–not an outrageous rate of growth, but growth [nonetheless]. It seems like we’re making a shift. We knew things would flip, and they did in April.”

There was less change in the LMI’s inventory and warehousing metrics, where costs continued to grow and capacity remained tight. The inventory levels index was 72.3 in April, down from 75.5 in March, and the inventory costs index was 87.7, down from 91 in March. The warehousing capacity index was 40.8, compared to 36.1 in March.

“Inventory continues to accumulate, [and] continues to be very expensive,” Rogers said.

The 12-month outlook calls for more moderate growth ahead. The LMI’s future predictions index registered 67.8 in April, down from 70.2 in March.

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).

apr22-transcap.png

Logistics Strategy
KEYWORDS LMI - Logistics Managers' Index
    • Related Articles

      Logistics industry growth slows in July

      Logistics industry growth slows in February

      Logistics industry growth slows in May

    Victoria Kickham, an editor at large for Supply Chain Quarterly, 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 Supply Chain Quarterly's sister publication, DC Velocity.

    Recent Articles by Victoria Kickham

    Logistics industry growth slowed in April

    Logistics industry growth slowed in March

    Logistics industry growth continued in February

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

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    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

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    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