The Logistics Managers’ Index (LMI) report reveals a continuous expansion in the logistics industry, reaching its highest level since 2022, indicating a robust recovery and promising peak-season demand.
The logistics industry has been on a growth trajectory for the tenth consecutive month as of September, hitting a two-year high, according to the latest Logistics Managers’ Index (LMI) report. The LMI, a barometer of business activity across warehousing and transportation markets, registered 58.6, a significant increase from August’s reading.
Signs of Solid Recovery
The LMI researchers interpret the September data as evidence that the industry is “back on solid footing”. This recovery is attributed to expanding inventory levels, a result of anticipated restocking by retailers preparing for peak-season demand. This shift is mirrored in the increased rates of warehousing and transportation prices among retailers and other downstream firms, indicating that “retail supply chains are whirring back into motion” for the peak season.
Peak Season: A Welcome Relief
The occurrence of the peak season is seen as a relief for the logistics industry and the economy at large, given the absence of a traditional seasonal peak since 2021. The East Coast dock worker strike earlier in the week had threatened this progress, but fears were allayed following a tentative agreement that would see workers at numerous ports resuming work.
A Normal Peak Season on the Horizon
Zac Rogers, an LMI researcher and associate professor of supply chain management at Colorado State University, expressed optimism about the upcoming peak season. He highlighted that the port of New York and New Jersey had its busiest month on record this past July, indicating that “inventories are moving now, downstream.”
About the LMI
The LMI is a monthly survey of logistics managers from across the country. It tracks 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 a collaborative effort of researchers from various universities in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The logistics industry’s unbroken expansion streak, peak season anticipation, and recovery signs point to a promising outlook for the future.
