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Transportation pricing grows faster than capacity again in May

Freight Waves

Transportation metrics saw little change in May as capacity, utilization and pricing remained in expansion territory, according to a monthly survey of supply chain professionals. The dynamic could represent an improving freight market, but it also reflects transportation companies offsetting higher operating costs through rate increases.

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

Supply Chain Matters

The Logistics Managers Index ReportĀ® , compiled by researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University and the University of Nevada Reno , and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) , reported a September value of 61.4,

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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 ā€œ significant rate of contraction ,ā€ 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 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). At this point the overall numbers suggest that the freight market is regressing back towards the mean.ā€. points above April’s reading).

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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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Rules and Regulations for Cargo Moving

American Global Logistics

Except as provided in an individual TRI, NRA or NSA whenever ocean freight and assessorial charges are assessed on a weight/measurement basis, same shall be assessed on the gross weight or the overall measurement of the cargo, whichever computation produces the greater revenue to the Carrier. RULE 5 Payment of Freight Charges 5.1

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