Logistics growth sees mild decline in November, states LMI

Logistics sector growth saw some easing in November, according to the new edition of the Logistics’ Managers Index (LMI), which recently released earlier this week.

The monthly LMI is a joint project among researchers from Arizona State University, Colorado State University, University of Nevada, Reno, Florida Atlantic University, and Rutgers University, and also receives support by Council of Supply Management Professionals (CSCMP). CSCMP. The LMI is written by Zac Rogers Ph.D., Steven Carnovale Ph.D., Shen Yeniyurt Ph.D., Ron Lembke Ph.D., and Dale Rogers Ph.D.

The report’s authors explained that the LMI score, or reading, is based on eight “unique components” within the logistics sector, including: inventory levels and costs, warehousing capacity, utilization and prices and transportation capacity, utilization, and prices.

The November LMI reading came in at 55.7 (a reading above 50 indicates growth is occurring), following matching 57.4 readings, for both September and October. This represents the ninth straight month the LMI has been below the all-time overall average of 61.4.

“Similar to dynamics observed in October, this slowdown is driven by a continued softening of inventory and warehousing metrics but tempered by some expansion in transportation,” the LMI stated. “Unlike last month, in November the downward pressures slightly exceeded upward momentum.” 

Key sub-index readings in the November LMI included:

• Inventory Levels rose 3.0%, to 52.5, expanding, after contracting in October;
• Inventory Costs, at 70.8 (any reading over 70.0 is viewed as significantly expansionary), were down 2.4%, expanding at a slower rate;
• Warehousing Utilization dropped 9.0%, to 47.5, expanding, after contracting in October and contracting for the first time in the LMI’s nine-year history, following an 8.8% October decline;
• Warehousing Capacity, at 54.8, increased 2.8%, expanding, at a faster rate, hitting its highest level since April;
• Warehousing Prices, at 62.9, fell 4.8%, expanding, at a slower rate, for its lowest reading since March;
• Transportation Prices headed up 3.2%, to 64.9, expanding, at a faster rate;
• Transportation Capacity was off 4.5%, to 50.0, expanding, at a slower rate; and
• Transportation Utilization, at 51.5, fell 5.8%, expanding, at a slower rate

Addressing the 9.0% decline in Warehousing Utilization, the LMI explained that the report’s respondents have never before reported they were using less available warehousing space month-over-month, adding that this shift represents a byproduct of the continued rundown of the large stocks on inventories that were built up through the first nine months of 2025, which has led to a softening in the warehouse market.

On the transportation side, the LMI explained that transportation markets are continuing what it called an upward trend, with the decreased in Transportation Capacity marking the lowest rate of expansion going back to September 2024 and is only the third time it has been flat since March 2022, “when the freight market flipped.” And it added that the gain in Transportation Prices rose at its fastest rate since February.

“The 14.9-point spread between Transportation Prices and Capacity is the second largest since April of 2022 (behind only January of this year), noted the LMI. “Taken together, these metrics suggest that the freight market is relatively healthy in November. It is worth pointing out that Transportation Price metrics this month are mainly driven by Downstream retailers (70.6 to 63.0) and grew faster in the first half of the month (70.0) than the second (60.8). This suggests that the improvement in transportation metrics is likely tied to the seasonal movement of inventories to retailers, meaning they could recede again should dynamics change post-holidays.”