Logistics Alert: Capacity SHRINKS for 11 Straight Months
The latest ISM Manufacturing PMI and LMI reports confirm what many in logistics already feel: demand is strong, but capacity is heavily constrained. Learn why transportation capacity is in contraction for the 11th straight month, pushing freight rates and diesel prices significantly higher. We break down the key numbers from October’s economic data, including surging […] The post Logistics Alert:…
Logistics capacity is in contraction for the 11th straight month, according to the October Logistics Managers Index. The Transportation Capacity Index reading of 38 is well below the 50-point expansion threshold, indicating a significant capacity shortage. This contraction is pushing freight rates and diesel prices significantly higher, with transportation prices surging from 61.7 last October to 88 in October.
The LMI report also cited Sonar data showing new truckload contracts are up 13.11% over the contract rates being replaced, pointing to continued rate increases into 2027. Transportation capacity has now contracted for 11 consecutive months, as indicated by the October Logistics Managers Index reading of 38, which is the lowest since September 2022.
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