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

    Logistics Managers Index contracts in May

    WERC releases 2023 DC Measures report

    How to turn around failing warehouse operations

    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

    Household goods customs broker thumb

    Household Goods Customs Broker

    Viewer Contributed
    Household Goods Customs Broker :Gallagher Transport International is a highly experienced customs broker specializing in household goods, providing efficient and cost-effective customs clearance services while ensuring compliance with all necessary regulations. Our Services Include: Importing & Exporting...

    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