The Headline: [from the report] The LMI reading LMI® at 67.1. Growth is INCREASING AT AN INCREASING RATE for: Inventory Costs, Warehousing Utilization, Warehousing Prices, Transportation Capacity, and Transportation Utilization. Growth is INCREASING AT A DECREASING RATE for: Inventory Levels and Transportation Prices. Warehousing Capacity is CONTRACTING. Meanwhile growth is increasing, but at a decreasing rate for Inventories. And, contracting for Warehousing Capacity and Transportation Capacity.
What’s Important: Notable of late is the high level of inventory many retailers are carrying. This should eventually (if it is not already) impact demand for all logistics services. The current high level of inflation may serve to keep rates elevated, however for the next quarter.