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U.S. Freight Rates Reach Six Year Low Milestone

Supply Chain Matters

freight rates have reached their lowest levels in nearly six years. In essence, it is confirmation of a freight recession condition. That is not good for retailers and manufacturers, each under the looking glass to reduce not only transportation but also inventory carrying costs. All rights reserved. The post U.S.

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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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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

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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. The authors point to the delivery time disruptions occurring in China , an increase in air freight costs from the U.S. Warehouse inventory levels are noted as remaining quite high.

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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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Continued Disruption and Added Cost Inflation Reflected in Key Global Transportation and Logistics Indices in March and Q1 2022

Supply Chain Matters

Part of this decrease may be attributed to temporary declining freight volumes as regions in Asia continue to deal with COVID-19 related suspensions of production, shipping or transport operations. and Warehousing Prices (90.5) Warehousing Capacity also hit a record in March, reaching an all-time nadir of 36.1 this month. ’.