We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
Home » September LMI reaches highest level in two years

September LMI reaches highest level in two years

Logistics industry roars back from pandemic-driven lows, driven by tightening capacity in transportation and warehousing as demand for logistics services grows ahead of Q4 peak season.

Logistics Managers Index September 2020
October 6, 2020
Victoria Kickham
No Comments

Economic activity in the logistics industry was up for a fifth straight month in September, continuing its recovery from a spring low brought on by the coronavirus pandemic, according to the latest Logistics Manager’s Index (LMI) report, released today.

The September LMI surged to a reading of 70.5, a level not seen since mid- to late 2018, and up considerably compared to a year ago, when the index had settled into the mid- to low-fifties range. Released the first Tuesday of each month, the LMI gauges the state of the industry by measuring inventory, warehousing, and transportation activity via a survey of North American supply chain and logistics professionals. An LMI reading above 50 indicates expansion in the industry; a reading below 50 indicates contraction. 

October’s reading is up 7% compared to September and up nearly 25% compared to a year ago.

LMI researchers attribute the rebound to a surge in e-commerce activity, which requires logistics-intensive services, along with inventory restocking as retailers ready for peak-season shipping demands—especially for goods coming from international suppliers, who had difficulty making regular deliveries during lockdowns in the early days of the pandemic. The increased activity is squeezing demand for warehousing and transportation services, which remain at a premium.

LMI warehouse metrics September 2020

“September’s robust readings are driven primarily by the tightening capacity in both transportation and warehousing as the demand for logistics services increases ahead of Q4,” the LMI researchers wrote in their September report, pointing to growth in both pricing and utilization in the LMI’s transportation and warehousing indices over the last few months.

“It’s hard to find [warehouse] space and a truck—and when you do find it, it’s going to be expensive,” LMI researcher Zac Rogers, assistant professor of supply chain management at Colorado State University, said.

Rogers said he expects demand to hold steady through the end of the year, noting that the industry was already feeling the effects of fourth-quarter, peak-season activity in late summer and early fall. 

“[Now] is the time we would see the highest price and lowest capacity readings—we usually see that in Q4,” he said. “But we’re already at that level. We’re seeing it now, and holiday shopping hasn’t started yet … Demand for warehousing and transportation will be up for the rest of the year.”

Rogers also pointed to an expected surge in e-commerce this holiday season “by an order of magnitude we’ve never seen” and the industry’s need to prepare for it. He pointed to retailers’ efforts to promote early holiday shopping as one way to address that need.

The LMI tracks logistics industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).

Visit the LMI website to participate in the monthly survey.

Business Management & Finance
KEYWORDS LMI - Logistics Managers' Index
  • Related Articles

    Freight markets buoyed by consumer buying shift from experiences to goods

    Driver shortage forces tight freight market as pandemic impacts linger

    Amazon sets delayed Prime Day sale on verge of holiday peak season

Victoria kickham headshot
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.

Recent Articles by Victoria Kickham

Farming out WMS implementation

Transportation report: Rising fuel prices will drive higher costs

Robotic picking saves the day

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Container prices continue to drop

  • Autonomous trucking firms launch partnerships with freight transportation providers

  • Demand for piece-picking robots gains steam

  • Now's the time to be a logistics professional

  • Empty shipping containers stack up at U.S. port depots

Now Playing on DCV-TV

Datalogic reducing labor vs

Reducing labor and exception handling with optimized scanners

DCV-TV 4: Viewer Contributed
When scanners fail to read barcodes on parcels as they move on conveyors, the added cost of manual handling and processing is significant.  New technology optimizes scanners dramatically increases accuracy eliminating manual labor. 

FEATURED WHITE PAPERS

  • Guide to Proven Warehouse Solutions

  • Five common misconceptions about running a private fleet

  • Optimize AS/RS With Advanced Warehouse Execution Software

  • The Value of Genuine Parts and Service

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing