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.
  • 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
    • Parcel Forum 2022
    • 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
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Logistics activity continues strong pace

Logistics activity continues strong pace

Industry growth slowed in December but remained above historic averages, the monthly Logistics Managers Index shows.

LMI
January 5, 2021
Victoria Kickham
No Comments

Economic activity in the logistics industry grew in December, although at a slower pace than during the run-up to the peak holiday shipping season, when activity across transportation and warehousing markets hit record levels. The slower growth remained above historic rates however, and the industry is expected to keep up the pace early in the New Year, according to the latest Logistics Managers Index (LMI) report, released today.

The December LMI registered 66.7, down four points compared to November and breaking a three-month streak of readings above 70. An LMI above 50 represents growth in the industry; an LMI below 50 indicates contraction. The LMI hit an all-time low reading of 51.3 in April and has been on an upward swing since, remaining above the 60-point mark since June.

“[Business] is still growing—just at slightly reduced rates,” said LMI researcher Zac Rogers, assistant professor of supply chain management at Colorado State University. Rogers added that it would have been difficult to maintain the record growth of earlier this fall, when pent-up demand, pandemic-related buying, and holiday shopping collided to create one of the busiest shipping seasons on record. 

Despite the December slowdown, activity remains well above year-ago levels. December’s LMI reading is up nearly 13 points compared to December 2019, and key metrics such as pricing continue to rise as the industry tries to keep pace with accelerated e-commerce activity and related delivery demands. Both warehousing and transportation prices remained near record-high levels, registering 76.9 and 85.1, respectively during the month, while capacity continued to contract. Warehousing capacity registered 46.9 and transportation capacity registered 39 during the month.

Transportation capacity, pricing challenged the industry in 2021

As January unfolds, accelerated online ordering continues and is compounded by record levels of returns, vaccine distribution challenges, and a backlog of imports from China and elsewhere that are clogging the nation’s ports and squeezing capacity, Rogers said.

“We’re not having the normal slowdown we’d expect to see,” Rogers said, noting that inventory levels remained elevated in December, registering 56.8 compared to a reading of 42 a year ago. 

Looking ahead, survey respondents predict much of the same in 2021.

“Respondents predict that prices will continue to grow, but at decreased rates from what we presently observe,” the researchers wrote. “This does not necessarily suggest that relief is around the corner however, as they also predict a strong level of continued growth in both inventory levels and prices. While more capacity is predicted to come online, particularly transportation capacity, it seems unlikely that it is enough to significantly bring down prices over the next year.”  

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.

Supply Chain Strategy
KEYWORDS LMI - Logistics Managers' Index
  • Related Articles

    September LMI reaches highest level in two years

    Rapid recovery continues in logistics

    LMI: Logistics industry growth continues

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

Warehouse automation market set to grow, despite short-term pain ahead

Picking gets smart

Economy, technology take center stage at JumpStart

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

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

Now Playing on DCV-TV

D991bf51 52ad 4867 98ff b56f4fe5dd93

State of the Industry: Fluctuations & Normalcy

DCV-TV 4: Viewer Contributed
In this second of a four-part State of the Industry video series, Greg Orr shares insights on the shifting fortunes of a cyclical truckload market and what passes for normalcy in this economy. The truckload market is famous for its boom-and-bust cycles. A downturn in the economy sends the market reeling with too...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

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

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing