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 March

Logistics industry growth slowed in March

Conditions slowed to the lowest levels in the history of the Logistics Managers Index, driven by an all-time low in transportation prices, research shows.

mar23-lmi_orig.png
April 6, 2023
Victoria Kickham
No Comments
Economic activity in the logistics industry slowed in March, driven by continued sluggishness in freight markets, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The March LMI reached an all-time index low of 51.1, down nearly four points from February and just slightly above the 50-point mark indicating economic expansion in the industry. An LMI reading above 50 indicates growth; a reading below 50 indicates contraction.

Logistics managers responding to the monthly LMI survey reported an all-time low in transportation prices, with that index falling five points to a reading of 31.1. At the same time, the transportation utilization index registered 50, indicating no upward movement for the first time in 2023. Transportation capacity continued to expand, indicating a continued softening of demand for services.

The LMI researchers summed up the freight challenges by noting that: “The freight recession that has been discussed over the last few months seems to have reared its head in March.” They pointed to recent industry consolidation and slowing volume among the major parcel carriers as key factors, as well as slowing conditions in ocean freight.

“The drying up of transportation demand extends to the oceans, where carriers are struggling to fill the capacity they built up over the last few years,” the researchers wrote. “With many of the contracts that were in place now expiring, importers are choosing between locking in low rates or taking advantage of the very favorable spot market. This softening is reflected in the continued expansion of available [transportation capacity] which is up [one point] to 71.4, the fourth highest reading for this metric in the history of the index.”

The slower conditions come amid a mixed overall economy that some business leaders say may be heading toward recession in the second half of the year.

“This is the slowest rate of [industry] growth we have ever tracked in the 6.5 years of the index, but it is still growth,” the researchers wrote in the March report. “Things have clearly been slowing down, but the macro economy has not yet come to a halt.”

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.
KEYWORDS lmi LMI - Logistics Managers' Index
    • Related Articles

      Logistics industry growth slowed in November

      Logistics industry growth slowed in October

      Logistics industry growth slows in March

    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 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