The latest release of the LMI, or the Logistics Managers Index, which is a diffusion index in which a reading above 50 is indicative of expansion in the logistics realm and below 50 is indicative of contraction, came in at 59.7 last month.

This is the first time we’ve seen the LMI fall below a 60 since May of 2020 and adds to the record decrease in the average which was at an all-time high just 6 months ago.

The rate of growth in all eight subsets of the LMI slowed last month except for warehouse capacity and transportation prices – both remained in contraction territory in August, decreasing 4.8 points and 1.5 points month-over-month respectively.

The contraction reading for both supporting the notion of above average inventory levels for most shippers, and much looser truck capacity.

SONAR’s Contract Load Accepted Volume Index, which removes rejections and focuses on accepted load tenders, registered an increase of 4% from right before Labor Day to now.

The increase (half a percent less than what we saw back in 2021) was 4.5% higher than back in 2020, and about 1.5% higher than 2019. A positive sign, and definitely an index to watch as we progress closer to peak season.

According to DATs National Van Rates, the top two most expensive outbound regions remain the Midwest at $2.66/mile and out west at $2.46/mile, fuel included.

The bottom two? The northeast coming in at $2.39/mile and the southern region at $2.43/mile.

Flatbed all in rates by region topping out in the Midwest at $3.13/mile on average and finding a floor for the week at $2.64/mile out west.

Midwest outbound rates following suit across the board as reefer rates top out at $3.27/mile on average – that’s a $0.66/mile spread between the cheapest reefer region (currently the southeast).

Despite consistent contracted volumes, rejections remain relatively flat, however still way closer to 2019 than the 22% and 25% rates of noncompliance experienced in 2021 and 2020.

This has been your Bridge Logistics Market Update for the week of Sept 12th, 2022.