September LMI: transportation prices near all-time highs as capacity contracts a 10th straight month

Transportation prices continued to surge in September as capacity tightened further, with the Logistics Managers' Index showing transportation prices at 92.7 — up 2.7 points from August and at or above 90 in five of the past six months, near all-time highs, according to FreightWaves on Oct. 6.

Record diesel fuel prices and heightened regulatory enforcement continue to restrict truck capacity, the report said. Transportation capacity fell 5.6 points to 34.4, a steep rate of contraction and the 10th straight month of shrinking capacity, while utilization hit 66.1. Looking ahead, logistics managers expect the market to stay very tight, projecting capacity at 37.9, utilization at 70.8, and pricing at 86.1 over the next 12 months.

The overall LMI rose 3.6 points to 70.2, its second-highest reading in four and a half years. Warehouse capacity fell 14.2 points to 39.3 — its fastest contraction since March 2022 — and aggregate logistics costs totaled 246.1, the highest since April 2022. "These high costs are putting significant pressure on supply chains and consumers alike," the report said.