The monthly Logistics Manager’s Index (LMI) was just released. This monthly report is full of important supply chain trends, graphs, and commentary. Here is a quick summary of some key points from this month’s release, with a link to the full online report at the bottom.
1. Index Hits a 4-Year High
• Overall LMI reads 71.1 in June, up 1.6 points from May’s 69.5 — the first reading above 70 (and the fastest expansion) since March 2022, well above the all-time average of 61.6.
2. Retailers Are Pulling Inventory Forward
• Inventory Levels jumped 5.7 points to 60.5, reversing a cautious, wait-and-see posture that defined most of 2026.
• Driven by back-to-school demand and a rush to beat potential Section 301 tariffs at the end of July.
3. A Retailer- and Large-Firm-Led Surge
• Downstream (retail) respondents outpaced Upstream firms on Inventory Levels, Inventory Costs, Warehousing Prices, and Transportation Prices.
• Larger firms (71.3 overall index) are expanding much faster than smaller firms (63.3) and absorbing cost increases more easily.
4. Warehousing Capacity Is Tightening Again
• Warehousing Capacity flipped back into contraction (-3.0 to 47.5) as incoming inventory eats up space.
• Utilization rose to 69.4 (highest since September 2022); Prices rose to 73.8.
5. Transportation Capacity Is Historically Tight
• Transportation Capacity fell to 30.8 — a seventh straight month of contraction at historically low levels.
• Utilization spiked to 74.7, an eight-year high, accelerating sharply within the month (69.2 early June to 78.8 late June).
6. Prices Stay Elevated Despite a Slight Cooldown
• Transportation Prices dipped 3.6 points to 92.4 but have now held above 90 for four straight months, unprecedented in the prior 52 months.
• Falling diesel and oil prices post-Iran-conflict have offered some relief, but tight capacity keeps pricing elevated.
7. Carriers Are Holding Back on Hiring
• Transportation jobs fell for the fourth time in five months (-1,300 in June), suggesting carriers view the price surge as potentially transitory.
• Shippers are shifting to rail: intermodal container volume is up 6% month-over-month.
8. 12-Month Outlook: Bullish, Especially on Inventory
• Respondents expect the overall index to reach 70.6 a year out.
• Expected Inventory Level growth jumped 10.7 points to 67.7, hinting at a broader move away from lean/JIT strategies.
9. Macro Backdrop Remains Uncertain
• USMCA expired July 1 with renewal in doubt; new EU tariff threats are looming.
• Job growth is soft (57K added in June vs. ~100K expected); inflation remains elevated (CPI +4.2% YoY, PPI +6.5% YoY, the highest since Nov. 2022).
10. Industry Consolidation Signals Confidence in Warehousing/3PL
• CMA CGM’s $1.4B acquisition of FedEx Supply Chain (adding 34M sq ft and 10,000 employees) would create the sixth-largest U.S. 3PL.
• JLL Income Property Trust’s continued shift toward industrial real estate reflects the same trend.
Read the full report at https://www.the-lmi.com/june-2026-logistics-managers-index.html.
About The Logistics Manager’s Index®
The Logistics Manager’s Index (LMI) is a joint project between researchers from Arizona State University, Colorado State University, University of Nevada, Reno, Florida Atlantic University, and Rutgers University, supported by CSCMP. It is authored by Zac Rogers Ph.D., Steven Carnovale Ph.D., Shen Yeniyurt Ph.D., Ron Lembke Ph.D., and Dale Rogers Ph.D.
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