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

Supply Chain Matters

While some multi-industry supply chain teams are likely continuing to experience and mitigate disruptions, particularly shortages related to semiconductor devices, this overall downward trending should be viewed as positive. According to the September report , growth is increasing for inventory levels, inventory and warehousing costs.

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Evidence Mounts of Non Peak Holiday Season in Transportation and Logistics

Supply Chain Matters

The July report narrative specifically indicates: “ We continue to see very different outcomes for the overall economy and the logistics industry. 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. warehouse workers in June of 2022.

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Hurricane season 2024: how to prepare your supply chain

Resilinc

Colorado State University (CSU) forecasts 23 storms, 11 hurricanes, and 5 major hurricanes—the highest prediction they have ever issued. Flooded or closed roadways, bridges, and overpasses can delay freight, rail, and even air cargo. For example, during Hurricane Harvey in 2017, the total trucking freight load fell by 10%.

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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. Logistics Managers Index (LMI) that again dropped to an all-time low for June 2023.

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November U.S. Logistics Manager’s Index- Noteworthy Trending

Supply Chain Matters

The report authors indicated that this decline was the largest since the start of the ongoing logistics industry downturn that that occurred in April 2022. which is attributable to Q4 holiday sales and the subsequent dips in Warehousing Capacity (+3.6) and slowdown in Warehousing Utilization (-14.0) declined a significant 7.1

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

Supply Chain Matters

The May report narrative reinforced that “ the negatives seem to outweigh the positives in the logistics industry.” logistics industry continues in a state of recession. Noted was that one of the busiest times in freight logistics, the seasonal back-to-school retail stocking period, likely did not materialize. The post U.S.

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Two Indices of Supply Chain Activity Noting Supply Chain Volatility Trending

Supply Chain Matters

The authors point to the delivery time disruptions occurring in China , an increase in air freight costs from the U.S. At this point the overall numbers suggest that the freight market is regressing back towards the mean.”. Noted was that the category of Warehousing Utilization grew at rate of 70.9, warehouses. .