The logistics industry is reporting growth levels not seen since late 2018, according to a June analysis from Logistics Managers' Index (LMI).
The highest reading since February 2019, last month’s LMI score of 61.7 jumped more than 10 points from April’s all-time low. The score is calculated using industry growth metrics including inventory levels and costs; warehousing capacity, utilization and prices; and transportation capacity, utilization and prices.
“The reopening of the economy has clearly played a role here, with downstream firms reporting a significant surge in retail on-hand,” the report said. “This, combined with the already high levels of stock have driven up inventory metrics, and put an unprecedented premium on warehousing space.”
The readings in inventory and warehousing are continuations of trends observed last month, the index said. The major difference in June was the comeback of transportation — with both transportation utilization and transportation prices up by double digits.
With the new round of COVID-19 outbreaks and the potential to re-shutter portions of the economy, whether or not this upswing will continue “is anyone’s guess.”
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