US logistics growth dips to lowest in six months

The US logistics sector stalled out in September, as softer freight demand and a cooling warehouse market pulled the industry’s growth index to its lowest level in six months. According to a report released this month, overall logistics activity registered a 57.4 reading in September, down nearly two points from August’s 59.3. That marks the lowest reading for the index since March, suggesting that a post-summer rebound in freight and warehousing has begun to taper off as companies recalibrate inventories and brace for a softer peak season. In the transportation capacity sector, readings fell by 2.2 points to 55.1 between August and September, indicating that available freight capacity continued to expand, though at a slower pace, and that carriers are adjusting to softer shipping volumes as demand has levelled off. Transportation utilisation values also dipped by nearly five points month-to-month to a 55.0 reading, well short of September’s eight-year average of 65.1, as per a report.

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