US Logistics Activity Remains Robust

The Logistics Manager’s Index in the US declined to 69.5 in May 2026 from 69.9 in April, pointing to a slowdown in the logistics sector, although it is still the second fastest level of expansion since March 2022. Inventory levels slowed (-1.5 to 54.8) and warehousing capacity moved back from contraction to mild expansion (+5 to 50.5). Despite the slowdown in inventory expansion and increase in storage capacity, costs remain elevated. Inventory Costs are up (+9.4 to 84.1) which is the highest reading for this metric since May of 2022. Warehousing prices remain elevated as well (70.7 vs 72.7). Also, the transportation market has been tight, with prices growing at an unprecedented rate since the closure of the Strait of Hormuz. Transportation prices are up to a record high (+1 to 96). Transportation capacity continues to contract quickly (31.7 vs 28.4), and transportation utilization expansion remains elevated (69.5 vs 69.6).

The Logistics Manager’s Index in the US increased to 69.9 in April 2026 from 65.7 in March, pointing to the strongest growth in the logistic sector since March 2022. Transportation prices continue their sharp upward trajectory (95 vs 89.4), the second-fasted rate of expansion for this, or any, metric on record. At the same time, inventory costs (74.7 vs 76.2) and warehousing prices (72.7 vs 67.4) remained elevated. Meanwhile, transportation utilization increased (69.6 vs 62.9) but transportation capacity recorded the second lowest reading on record (28.4 vs 39.2). Freight markets were already on a strong upward trajectory coming into 2026, the closure of the Strait of Hormuz and subsequent increase in fuel costs have supercharged these movements. Inventory level expanded faster (56.3 vs 54.8), as firms consolidate shipments to avoid transportation surcharges. Warehousing capacity (45.5 vs 46) fell faster but warehousing utilization (64.4 vs 59.8) expanded more.

The Logistics Manager’s Index in the US increased to 65.7 in March 2026, the highest since May 2022, from 61.5 in February, driven by continued expansion in the freight market. Transportation Prices skyrocketed (+12.7 to 89.4, a new high level since March of 2022), at least partially attributable to the start of the Iran conflict that has limited available oil supplies. This stands in contrast with the continued contraction of Transportation Capacity (-1.8 to 39.2), at least partially due to the reduction of fleet capacity of the last few years. The 50.2-point gap between these two metrics is the highest positive inversion since November 2021. Meanwhile, Inventory Levels expanded slightly faster (+1.0 to 54.8) and Inventory Costs also moved higher (+8.4 to 76.2, the highest since August 2025). Also, Warehousing Capacity contracted (-4 to 46) and Warehousing Utilization expansion slowed (-0.6 to 59.8) while Warehousing Prices increased (+4.8 to 67.4).