Transportation capacity contracted at a faster pace in July while pricing growth remained robust, according to the Logistics Managers' Index. The LMI's transportation capacity reading fell to 28.4, a decline of 2.4 percentage points from June and tying the second-fastest contraction rate in the index's ten-year history. Transportation prices registered 86.9, slowing 5.5 points from June but still indicating very strong expansion, and transportation utilization stood at 65, down 9.7 points yet historically elevated. The report noted that tight capacity has pushed tender booking lead times to an average of 3.74 days, up 11% year over year. Werner Enterprises reported a 28% year-over-year jump in revenue per truck per week after restructuring its one-way fleet, while Schneider National captured double-digit rate increases on contract renewals and sees the truckload market in the early stages of rate recovery. The overall LMI dipped 2.2 points to 68.9 but remains on track for its highest annual reading since 2021, with inventory costs, warehouse prices, and aggregate logistics costs all staying elevated.
Schneider National IncSchneider National captured double-digit rate increases on contract renewals, indicating strong pricing power.
Werner Enterprises IncWerner Enterprises reported a 28% year-over-year jump in revenue per truck per week after restructuring its one-way fleet, reflecting strong demand.