August LMI: Capacity at 40, Yet Prices Soar. Why This Disconnect?
The August Logistics Managers’ Index (LMI) reveals a striking paradox in the freight market: transportation capacity continues its deep contraction with a reading of 40, yet prices are surging. This disconnect creates a challenging environment for carriers striving for profitability. Julie Van de Kamp breaks down the latest PMI and LMI data, exploring key indicators […] The post August LMI:…
The Logistics Managers’ Index (LMI) for August reveals a perplexing situation in the freight market: transportation capacity is at a contraction rate of 40, yet prices are soaring. This disconnect highlights the urgent need for carriers to restore profitability after years of depressed rates, according to FreightWaves' Julie Van de Kamp.
Despite capacity contraction, transportation utilization has surged to 70.6, the second time in five years it has reached robust growth levels. However, the overall LMI stands at 66.6, a significant increase from previous years, indicating persistent pricing pressure and a challenging environment for carriers striving to achieve profitability.
Brief written by urgent.news from FreightWaves's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
