US Logistics Managers Index Rises to 70.2 in Second-Highest Reading in 4 Years

The US Logistics Managers Index rose in September to 70.2 points from 66.6 points in August, achieving its second-highest reading in four years, according to data published by "Logistics Management" magazine.

Total logistics costs reached 246.1 points, the highest since April 2022, while transportation prices climbed to 92.7 points, signaling escalating inflationary pressures on the supply chain in the United States.

Inventory levels recorded an increase to 58.9 points, compared to a contraction in warehousing capacity to 39.3 points at the fastest pace in four and a half years, reflecting growing congestion in warehouses as available space for goods declines.

These figures signify an increase in the cost of managing supply chains and storing goods in the world's largest economy, a development closely watched by importers and Arab companies doing business with the US market due to its impact on freight rates and delivery schedules for exports and imports.

What do these terms mean?

Logistics Managers Index: A monthly survey measuring movements in the US logistics sector through metrics of warehousing, transportation, inventory, and their associated costs.

Supply Chain: The integrated network of suppliers, carriers, and warehouses moving goods from production to the consumer; any impact on it affects prices.

Warehousing Capacity: The available warehouse space for storing goods; its contraction means increased difficulty in finding space for growing market inventory.