A September supply chain survey shows transportation capacity has reached new lows. The Logistics Managers’ Index (LMI), a survey of leading logistics executives, showed capacity fell to new lows, dipping another 770 basis points during the month to a 23.8% reading.
The LMI is a diffusion index, wherein a reading above 50% indicates expansion and a reading below 50% indicates contraction. The survey captures the rate of change in activity for key supply chain trends in areas like transportation, inventory and warehousing.
The September transportation capacity reading was the lowest level ever for any of the eight metrics the survey tracks. The capacity situation was even worse for “downstream firms,” or those closest to the consumer, at 16.3%.