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 » Logistics economy grew in February

Logistics economy grew in February

Strong demand for services continues as supply chains struggle with inventory accumulation, capacity constraints, and rising prices, LMI report shows.

feb22-lmi.png
March 1, 2022
Victoria Kickham
No Comments

The logistics economy continued its strong rate of expansion in February, fueled by demand for warehousing and transportation services, rising prices, and high inventory levels. The industry saw its 13th straight month of “significant growth” according to researchers for the monthly Logistics Manager’s Index (LMI) report, released today.

The LMI rose 3.3 points from January to a reading of 75.2, the second highest reading in the index’s six-year history and well above the 50-point mark indicating expansion across the industry. The logistics economy in February was characterized by unseasonably high inventory levels, continued capacity constraint across transportation and warehousing markets, and higher costs throughout the supply chain.

“Like January, this month’s growth is driven by rapid growth in inventory levels, which are up 9.1 points to 80.2—crossing the 80.0 threshold for the first time and shattering the previous record of 72.6,” the LMI researchers wrote. “This is a complete 180 from the Fall of 2021, when firms struggled to build up inventories. Now it seems that a combination of over-ordering to avoid shortages, late-arriving goods due to supply chain congestion, and a softening of consumer spending has created a logjam.”

Geopolitical issues are compounding the problem, most notably Russia’s invasion of Ukraine, which is accelerating already high fuel prices and creating supply chain delays as carriers re-route air cargo between Europe and Asia due to airspace closures in the region, the researchers also said. Slowdowns at the U.S./Canada border due to protests across Canada were also a factor during the month, pushing up prices to ship goods, they said.

Logistics managers surveyed for the February report said they expect current conditions to hold. The LMI’s Future Conditions Index came in at a reading of 70, down slightly from January, but still indicating expansion over the next 12 months. Logistics managers said they expect capacity to remain tight, especially in warehousing, and industry costs and prices to remain high.

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.

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

    Logistics economy grew in March

    Logistics economy expanded in January

    Logistics economy continues expansion streak in December

  • Related Events

    Manifest: The Future of Logistics

Victoria Kickham, an editor at large for Supply Chain Quarterly, 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 Supply Chain Quarterly's sister publication, DC Velocity.

Recent Articles by Victoria Kickham

Logistics industry growth slows in April

Demand for piece-picking robots gains steam

Nucor expands steel racking business

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

Report Abusive Comment

Most Popular Articles

  • Now's the time to be a logistics professional

  • Autonomous trucking firms launch partnerships with freight transportation providers

  • Demand for piece-picking robots gains steam

  • Report: Delivery expectations intensify

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

Now Playing on DCV-TV

5480fb3e eabb 4d19 8c47 2e6c8724563d

“With Freight Rates More Stable, Why Do My Freight Costs Keep Going Up?”

DCV-TV 4: Viewer Contributed
Lately people have been asking me a pressing question: “Mike, if there’s a freight recession headed our way, shouldn’t we be seeing freight rates and our freight costs going down?”Ideally the answer to that question would just simply be “yes.” However, these are not simple times. Which is why the answer to this...

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