Logistics Managers’ Index Shows Tight Transportation Conditions in June

Transportation rates rose again in June as capacity across the sector tightened further, FreightWaves reported (7-7-26).

The Logistics Managers’ Index (LMI), a diffusion index in which a reading above 50 indicates expansion and a reading below 50 signals contraction, returned a 92.4 reading for transportation prices in June. That was 3.6 points below the record pace set in May.

Transportation capacity registered 30.8, down 90 basis points during the month, while transportation utilization increased 5.2 points to 74.7. Transportation capacity has declined for seven consecutive months.

Utilization accelerated through June, rising from 69.2 in the first half of the month to 78.8 in the back half—an eight-year high. Public truckload carriers have focused on improving utilization through better load planning and freight selection in recent quarters.

Logistics managers surveyed expect the transportation market to remain very tight over the next 12 months, with future readings of 42.4 for capacity, 75.8 for utilization, and 87.0 for pricing.

FreightWaves noted that the LMI is a collaboration among Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, conducted in conjunction with the Council of Supply Chain Management Professionals.