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Global Supply Chain Volatility Continues to Moderate But Not Inventory and Warehousing Costs

Supply Chain Matters

The takeaway for September was that global manufacturing activity officially fall below the 50.0 According to the September report , growth is increasing for inventory levels, inventory and warehousing costs. In a prior Supply Chain Matters posting, we highlighted both September and Q3-2022 global and regional PMI indices.

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June 2023 US Logistics Managers Index Drops to a Revised Low

Supply Chain Matters

Consequently, the warehousing capacity metric increased a reported 6.8 Further, the added evidence of increased warehouse capacity levels will have an effect on previously rather high levels of warehouse contracting and leasing rates. The June value of 45.6 declined 1.7 percentage points from the May value of 47.3,

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U.S. Freight Rates Reach Six Year Low Milestone

Supply Chain Matters

Panelists reportedly pointed to a more pessimistic outlook for transportation utilization for the remainder of this year From our lens, the picture of the report is that not only is an overall contraction of freight demand, but continued high inventory and warehouse capacity utilization is leading to increased inventory storage costs.

Freight 52
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Evidence Mounts of Non Peak Holiday Season in Transportation and Logistics

Supply Chain Matters

While 209,000 workers were added in June, 14,000 freight and parcel carriers were cut and 6,900 warehousing and storage jobs were lost. In the past we would expect to see transportation and warehousing ramping up hiring in late summer ahead of peak season. ” warehouse workers in June of 2022. The July value of 45.4 declined 0.2

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U.S. Logistics Manager’s Index Drops to an All Time Low in May

Supply Chain Matters

Other insights pointed out in the May LMI report are that the current rate of contraction is strongest in upstream firms, namely manufacturers, wholesalers and distributors, compared to their downstream retail industry counterparts. The reported May value of 47.3 compared to the April value of 50.9, Further reported was that volumes of U.S.

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Two Indices of Supply Chain Activity Noting Supply Chain Volatility Trending

Supply Chain Matters

The authors specifically make mention of geopolitics along with the ongoing effects of the pandemic impacting many manufacturing regions in China. Also reported was less change in Inventory and Warehousing metrics as costs continue to grow and capacity remains tight. Warehouse inventory levels are noted as remaining quite high.

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Reports of Easing Global Supply Chain Volatility in July

Supply Chain Matters

The overall takeaway from the July data was that global production momentum had begun to stagnate and in some regions such as the Eurozone, Taiwan, and to some extent , certain manufacturing regions of China, PMI values had reached contraction levels. . Warehousing and Inventory metrics continue to buoy the logistics sector.