Reopenings Help Logistics Industry Recover: LMI Report

As the United States reopens following strict shutdowns during COVID-19, the logistics industry shows signs of recovery, according to the June 2020 Logistics Manager's Index Report.

White Freight Truck Close Up Photography 2449454
Photo by Craig Adderley from Pexels

The logistics industry continues to recover from April’s all-time low overall score of 51.3, following up May’s reading of 54.5 with an overall LMI score of 61.7, the highest reading since February 2019. The reopening of the economy has clearly played a role here, with downstream firms reporting a significant surge in retail on-hand. This, combined with the already high levels of stock have driven up inventory metrics, and put an unprecedented in the history of the LMI premium on warehousing space. The readings in inventory and warehousing are continuations of trends observed last month, the major difference in June was the comeback of transportation, with both Transportation Utilization and Transportation Prices up by double digits. With the new round of COVID-19 outbreaks and the potential to re-shutter portions of the economy, whether or not this upswing will continue is anyone’s guess. For the moment however, the LMI is reporting growth levels not seen since late 2018.