The Headline: The average LRMI for the 3rd Quarter is 72.36 which is an increase from the 2nd quarter, suggesting a higher level of risk in the 3rd Quarter 2022. Economic Risk has the highest risk index across all risk categories since the creation of the LRMI in the third quarter of 2020. The other biggest Q4 risks: Transportation Disruption Risk, Supplier Risk, and Operational Risk.
What’s Important: Notable among the report’s findings is that US demand is decreasing, bringing down with it freight costs for truckload despite rising fuel costs. Lead times and equipment costs have increased dramatically, and parts are backordered, extending equipment downtime. Furthermore, the strong US dollar is beginning to impact global trade (i.e., increased costs for non-USD economies) which is one more negative sign for the economy and raising concerns of a recession even higher.