Transportation Rates Surge: Fastest Increase Since 2022 📈
The Transportation Prices Index (The LMI) surged to 57.6 in February 2024, marking its fastest growth since June 2022. This represents a 1.8 point increase from January's reading and suggests an acceleration out of the freight recession.
The data also reveals a shift within the supply chain. The Upstream Transportation Prices index (60.9) indicates that manufacturers and wholesalers are starting to move inventory, while the Downstream index (52.7) reflects a slower rate of price increases for retailers and other end-users. This contrasts with trends observed in late 2023, where price hikes were primarily felt downstream.
An interesting observation is the slowdown in price growth momentum later in February (52.4) compared to earlier in the month (62.0). This could potentially be attributed to seasonal fluctuations around the Chinese New Year. However, the future predictions included later in the report suggest this is a temporary dip rather than a return to price contraction. Nevertheless, continued monitoring of Transportation Prices is essential.