Supply Chain Index Hits New Low

SalesMoney Matters
Written By Jennifer Joslyn

📉 Supply Chain Index Hits New Low.

According to the Logistics Managers' Index (LMI), supply chain activity reached a new low in June, marking the fourth consecutive record low. The LMI stood at 45.6, 1.7 percentage points lower than in May. Transportation prices fell at a slower pace, while capacity continued to grow. Despite excess capacity and low prices, expected exits from the freight market have not materialized. Transportation utilization improved slightly but remained in contraction. The one-year outlook for transportation prices was optimistic, indicating an expectation of a freight market rebalancing over the next 12 months. While FreightWaves' spot rate truckload data has shown positive trends recently, it remains below early 2022 levels due to lower freight volumes and inventory purging by shippers.

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Jennifer Joslyn
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