Breaking

Transportation Costs Climb as Truck Capacity Remains Scarce

Transportation prices surged in September as carrier capacity tightened further, according to the Logistics Managers' Index survey of supply chain executives. The pricing index reached 92.4, marking the fifth time in six months it has exceeded 90. Record diesel fuel expenses and strict regulatory enforcement continue constraining available truck capacity, pushing the index near historic highs. Inventory levels experienced steep contraction, with the index falling to the second-highest reading in 4.5 years. Retail inventories remain positioned at wholesale levels, with upstream suppliers reporting 61.4 inventory readings versus 53.1 for downstream retailers. Logistics managers anticipate the transportation market will stay exceptionally tight over the next 12 months. Tender rejection rates indicate carriers are rejecting significant load volumes, reflecting the continued scarcity of available trucking capacity.