Traffic indicators take a downturn in August

Freight market reveals a noticeable relaxation in August, as sentiment among supply chain leaders indicates a moderation in transportation capacity and pricing.

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2025 September 13 . 9:10 AM

2 min read

Transportation statistics deteriorate in August

Traffic indicators take a downturn in August

The latest Logistics Managers' Index (LMI), a measure of supply chain health, has shown a largely unchanged reading in August 2024, with a score of 59.3. This index, a collaboration among several universities and the Council of Supply Chain Management Professionals, provides insights into the current state and future outlook of the logistics industry.

One of the key findings from the report is the mild negative freight inversion, meaning Transportation Capacity is expanding faster than Transportation Prices. This suggests a potential slowdown in the market, as a boom is unlikely due to the negative inversion at the start of the peak season.

Transportation utilization saw a decrease in August, falling to 54.7, a decrease of 4.8 points. Conversely, warehouse utilization stepped 2.6 points higher to 62.1, marking the highest capacity reading since May 2024. Changes in warehousing capacity drove warehouse prices up by 3.9 points to 72.2, the second-highest reading for inventory costs since October 2022.

Inventories had a reading of 58.2, up 2.7 points sequentially. Interestingly, inventories have moved downstream in the supply chain, with retailers pointing to higher transportation prices (66.1) and upstream wholesalers signaling more muted expansion (51.5).

The report predicts muted trends for the back half of the year due to some shipper demand already being filled ahead of the traditional peak season. However, it also warns that some of these costs may be passed along to consumers in the near future.

On the personnel front, Brad Delco was appointed as the next Chief Financial Officer (CFO) and Executive Vice President of Finance by J.B. Hunt Transport Services, effective September 1, 2025.

Survey respondents forecast a slightly contractionary one-year-forward forecast of 49 for the transportation capacity index. Smaller companies, those with less than 1,000 employees, reported higher inventories and tighter capacity.

In conclusion, while the LMI remained largely unchanged in August, the mixed signals indicate a complex landscape for the logistics industry. The potential slowdown in the market, coupled with the possibility of increased costs being passed onto consumers, underscores the need for continued vigilance and adaptability in the months ahead.