Inventories

A number of declining data points addressing logistics sector growth patterns, driven by ongoing tariff-driven uncertainty, was apparent in the March 2025 edition of the Logistics Manager’s Index (LMI), which was released this week.

As United States-driven tariff-related actions continue to dominate the narrative in supply chain and freight transportation circles, leading to a new “Trade War,” it is not an understatement to say it has brought with it a sense of economic uncertainty, and unease regarding macroeconomic conditions.

The new edition of the BlueGrace Logistics Confidence Index, for the second quarter of 2025, which was recently issued by Tampa, Fla.-based, non-asset-based 3PL BlueGrace Logistics, signaled positive momentum for both order volume expectations and revenue expectations, for the second quarter.

Despite ongoing levels of uncertainty from the White House’s various tariff actions, positive momentum in the logistics sector continues to gain traction for the 14th consecutive month in February according to the new edition of the February 2025 Logistics Manager’s Index (LMI), which was released this week.

The report’s benchmark reading, the PMI, came in at 50.3 (a reading of 50 or higher indicates growth), down 0.6% compared to January’s 50.9 reading. The February PMI grew, at a slower rate, for the second consecutive month in February.

The report’s benchmark reading, the PMI, stood at 50.9 (a reading of 50 or higher indicates growth), marking a 1.7% increase over December’s 49.2 reading. This reflects the overall economy expanding for the 57th consecutive month, following the contraction in April 2020.

December’s LMI reading, at 57.3, is off 1.1% compared to November’s 58.4 reading and is also down compared to October’s 58.9, the fastest monthly rate of expansion going back to September 2022.

The December Services PMI, at 54.1 (a reading of 50 or higher signals growth) rose 2.0% over November’s 52.1 reading, growing, at a faster rate, for the sixth consecutive month.

The report’s benchmark reading, the PMI, at 48.4 (a reading of 50 or higher indicates growth), increased 1.9% over October's 46.5, its lowest number in 2024, with the PMI contracting for the eighth consecutive month and the 24th time in the last 25 months, since contracting in April 2020. It added that the overall economy has expanded, at a faster rate, for the last 55 months.  

Descartes said that the acquisition price was roughly $110 million.

One key topic was the ongoing freight recession, which has now persisted for more than two years, with inventories still high, over-the-road capacity leaving the market, and demand levels remaining below expectations.

Looking at fourth quarter revenue expectations, the report observed that 66% of respondents are calling for positive revenue growth, topping the first and second quarters, at 65%, respectively, and trailing the third quarter, at 70%.

Walmart announced it is expanding its logistics and supply chain services for sellers using its Walmart Fulfillment Services (WFS) offering. The company explained that the objective of this is to offer up new ways for sellers to quickly move merchandise across markets and use Walmart to fulfill any e-commerce retail order.

​​​​​​​Logistics Management Group News Editor Jeff Berman recently caught up with DHL Express U.S. CEO Greg Hewitt to discuss various topics, including: macroeconomic themes, Mexico's growth, the fall Peak Season, and logistics trends, among other topics.

Motive began producing this report a little more than a year ago. The report’s findings are based on aggregated and anonymized insights from the Motive network and publicly available government data from the Federal Motor Carrier Safety Administration, U.S. Census, and U.S. Department of Transportation, according to Motive.