In December, transportation metrics displayed further decline, marked by increased capacity and reduced prices, as per a survey of supply chain executives. The Logistics Managers’ Index (LMI) recorded a 63.3 for transportation capacity, signifying growth, while transportation utilization stood at 54.6, pointing to increased activity in the latter part of the month due to holiday shipments. However, transportation prices continued to drop, attributed in part to reduced fuel costs.

The decline in fuel prices, leading to lower fuel surcharges, has played a role in these reduced transportation costs. The report highlighted the potential positive impact of decreased costs on supply-based inflation, suggesting a possible revival for the freight sector in 2024.

Looking ahead, respondents anticipate a moderate increase in transportation capacity with a reading of 51 and a sharp rise in prices, registering at 70.3, for the upcoming year.

Inspired by: Transportation capacity up again in December, prices fall faster – FreightWaves