The LMI - one of the most reliable indicators of logistics market sentiment has risen to its highest level since June 2022, increasing by 13.7 points.
— Craig Fuller 🛩🚛🚂⚓️ (@FreightAlley) June 7, 2024
We are SO BACK. pic.twitter.com/FdhQmW7nl0
May Logistics Manager's Index Showing Strong Indicators
The Logistics Manager’s Index (LMI) read 55.6 in May 2024, up 2.7 points from April's 52.9. This marks expansion in 9 of the last 10 months, including the last six consecutively. The most notable change this month is in Transportation Prices, which increased by 13.7 points from 44.1 to 57.8, their highest level since June 2022.
The overall index has improved due to strengthening transportation metrics, particularly Transportation Prices, which have reached their highest reading since June 2022.
Transportation Prices have now slightly surpassed Transportation Capacity, which fell by 4.0 points to 57.3. This is a significant shift from April when capacity exceeded prices by 17.3 points.
Although the expansion of Transportation Prices above Capacity is encouraging, it has been temporary in previous months. The ongoing freight recession, which began in mid-2022, will not end until Transportation Prices consistently exceed Transportation Capacity.