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 slowed in November

Logistics industry growth slowed in November

Activity across the industry continues to moderate from pandemic-era highs, driven by a winding down of inventories.

nov22-lmi.png
December 6, 2022
Victoria Kickham
No Comments

Economic activity in the logistics industry slowed for a second straight month in November, continuing a steady decline from the pandemic-induced record high growth levels of mid-2020 through early 2022, according to the latest monthly Logistics Managers’ Index (LMI) report, released today.

The LMI registered 53.6 in November, down nearly four points from October to reach the second lowest level in the index’s history, according to LMI researchers. The LMI measures economic activity in the industry by surveying logistics managers each month. A reading above 50 indicates growth, and a reading below 50 indicates contraction. The index hit its lowest level in April 2020 at the height of the Covid-19 pandemic–coming in at 51.3–and then soared to readings in the 70s, which indicates strong growth.

The November slowdown was driven by what the researchers called a “long-anticipated wind down” of inventories. Inventory levels hit an all-time high reading of 80.2 in February and have been declining ever since, falling to 65.5 in October and then dropping nearly 11 points to a reading of 54.8 last month, due primarily to peak season holiday shopping.


nov22-inv2020s_orig.png

Although it’s good news that the industry is working through the glut of inventory from earlier in the year, other measures remain tight and continue to challenge companies up and down the supply chain. Warehousing space is still hard to come by, for instance. The LMI’s warehousing capacity index came in at 46.8–up slightly compared to recent months but still in contraction mode, where it has been for the past two years. Warehousing prices remain high–the index came in at 74.4–but are falling from their record-high readings over the past two years.

“On the flipside, the transportation market continues to fall from the dizzying heights that had become the norm during 2021,” according to the report. “This is epitomized by Transportation Prices, which read in at 37.4–the most severe rate of contraction we have measured in the over six years of the Logistics Managers’ Index.”

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 web page for information on participating in the monthly survey.

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

    Logistics Manager's Index shows growth rate slowed in November

    Logistics industry growth slowed in October

    Logistics industry growth continued in November

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

Economy, technology take center stage at JumpStart

Q1 Outlook: Carriers will continue to compete for limited demand

Government agencies release ‘blueprint’ for decarbonizing transportation sector

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