The transportation market cooled slightly in July but remains tight for shippers. Data from the Logistics Managers’ Index shows transportation capacity is falling faster, with the index recording a reading of 28.4. This contraction in capacity reflects ongoing regulatory efforts to remove unsafe drivers from the road and a shift in carrier strategy toward better asset utilization rather than adding new equipment.
Major carriers are seeing the impact of these changes in their financial results. Werner Enterprises recently restructured its one-way fleet to prioritize profitable accounts and increase revenue per truck, while Schneider National reported double-digit rate increases during recent contract renewals. These moves align with industry sentiment that the market is in the early stages of a sustained rate recovery.
Supply chain costs remain high across the board. Inventory costs continue to rise despite a dip in inventory levels, and warehouse capacity is tightening for upstream manufacturers and wholesalers. Warehouse prices are currently at their second-highest level since July 2022.
Looking ahead, logistics managers expect these pressures to continue over the next year. Forecasts suggest a difficult environment for shippers, with expectations of limited capacity, high utilization, and rising pricing through next summer. Shippers are planning for a future where they must manage increasing inventories within a restricted and expensive logistics network.