The US December Logistics Manager’s Index (LMI) was at its lowest level in four months dropping to 57.3 points in December 2024, down from November’s 58.4, “largely driven by a seasonal decrease in inventory levels”.

The LMI, established in 2016, tracks eight key metrics in the logistics sector - inventory levels, inventory costs, warehousing capacity, warehousing utilisation, warehousing prices, transportation capacity, transportation utilisation and transport prices. 

The monthly survey is taken by more than 100 professionals in the logistics sector and is produced by leading universities including Rutgers Business School, Arizona State University, Colorado State University, University of Nevada and Florida Atlantic University, to identify trends and developments in the sector. 

The December 2024 LMI reveals inventory levels dropped by 6.1 points month-on-month, however this “does not tell the entire story”, the index producers warn.

“Upstream firms like manufacturers and wholesalers saw inventory levels rise to 57.9 due to increased imports, while downstream retailers experienced a significant decline in inventory levels, dropping to 33.9, as expected during the holiday season,” producers say. “The decrease in inventory also led to slower growth in warehousing capacity, which fell 7.1 points to 61.6. 

“Meanwhile, transportation prices rose by 3.0 points to 66.8, marking the fastest growth since April 2022 and surpassing the 65.0 average for the first time in over two years. This is likely due to strong consumer demand and higher transportation needs, especially for costly last-mile deliveries during peak holiday shopping.”

Survey respondents in December were asked to predict the movement of the LMI and individual metrics a year from now and their responses showed they remain optimistic predicting expansion in the overall index at a rate of 65.8, up (+2.2) from November’s future prediction of 63.6.”