The growth rate of transportation prices surged to a more than two-year high in December, according to a monthly survey of supply chain managers.
The Logistics Managers’ Index showed sentiment around transportation prices stood at 66.8 during the recent month, up 3 percentage points from November and the highest growth rate posted since April 2022. Strong consumer demand and record e-commerce deliveries were cited as the reasons for the acceleration in the pricing index.
The LMI is a diffusion index wherein a reading above 50 indicates expansion while one below 50 signals contraction.
Transportation capacity (53.2) increased 60 basis points from November, remaining modestly in growth territory. This was a third straight month of expansion. The subindex twice hit cycle lows of 50 during 2024. Transportation utilization remained at 60.5 during December.