After months of volatility, the logistics industry has demonstrated encouraging growth in June, with the latest Logistics Manager's Index (LMI) revealing positive signals. The index, collaboratively produced by researchers from Arizona State University, Colorado State University, University of Nevada, Florida Atlantic University, and Rutgers University, and supported by the Council of Supply Chain Management Professionals (CSCMP), provides crucial insights into industry trends.
The June LMI score reached 60.7 , marking a 1.3% increase from May's 59.4. This achievement represents the first time the index has crossed the 60-point threshold since July 2022. Notably, this marks the third occurrence of such growth in 2025, a level not achieved during either 2023 or 2024.
Inventory Expansion Drives Growth
Analysts highlight that inventory expansion served as a primary growth driver, with inventory levels increasing by 8.3% to reach 59.8. Tariff-related factors played a significant role in this development. The report reveals a striking contrast between the first half of June (LMI: 67.4), when importers capitalized on tariff suspension measures, and the second half (52.2).
Inventory costs rose by 2.5% to 80.9 in June, surpassing the 80-point mark for the first time since October 2022. This surge reflects the post-pandemic inventory bullwhip effect that continues to influence supply chains.
Warehousing and Transportation Trends
Warehousing capacity decreased by 2.2% to 47.8, entering contraction territory for the first time since January 2023. Transportation metrics showed mixed results:
• Transportation capacity declined 2.3% to 52.4 (lowest since October)
• Transportation prices dipped slightly by 1.1% but remained robust at 62.0
• Transportation utilization saw a modest 0.3% increase to 52.9, maintaining expansion since July 2023
Market Uncertainties Loom
The report notes several factors influencing market expectations, including high U.S. inventory levels and uncertainty surrounding future trade policies. Notably, U.S.-Canada negotiations regarding digital services taxes have been paused, contradicting earlier statements about reaching a trade agreement by July 20.
With numerous temporary tariff suspensions set to expire next month, the potential for new trade agreements could significantly impact financial markets, the broader economy, and logistics sector performance. Despite these uncertainties, global supply chain managers remain cautiously optimistic about finding solutions, with most believing tariff impacts won't prove catastrophic as the White House appears unwilling to push the economy into turmoil.