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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 On the other hand, transportation metrics continue their slowed pace, reaching the second highest level of capacity growth, and the third fastest rate of price contraction in the history of the index. up from an August reading of 59.7.

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June 2023 US Logistics Managers Index Drops to a Revised Low

Supply Chain Matters

According to the June report summary , the primary driver of the latest decline was the inventory metric, which reportedly contracted 6.5 Consequently, the warehousing capacity metric increased a reported 6.8 Both metrics contributed to the overall contraction in the LMI along with contracting price levels for transportation.

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

Supply Chain Matters

not only described as a “ significant rate of contraction ,” but also the first time that this particular metric has reached such a low level. Noted was that one of the busiest times in freight logistics, the seasonal back-to-school retail stocking period, likely did not materialize. The reported May value of 47.3

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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. is only a half-point lower than the metric’s all-time average of 74.4).