Transportation Pricing Index Hovers Near All-Time High in June

The Logistics Managers’ Index indicates that transportation pricing remained near record levels in June, registering a reading of 92.4 as capacity across the sector continues to tighten. This sustained pricing pressure is driven by a seventh consecutive month of declining transportation capacity and an eight-year high in utilization rates during the latter half of the month. For the freight sector, these figures signal a significant shift as shippers face crumbling routing guides and the need to reprice contracts amid tightening market conditions.

According to the latest LMI report, transportation pricing remains under intense pressure, with the June reading of 92.4 sitting just 3.6 percentage points below the record set in May. This expansion in costs is mirrored by a continued contraction in transportation capacity, which fell to 30.8—a 90-basis-point drop marking the seventh straight month of decline. Meanwhile, transportation utilization rose to 74.7, fueled by a surge in the second half of the month that reached an eight-year high of 78.8. Public truckload carriers are reportedly focusing on improved load planning and freight selection to maximize this utilization.

The tightening market is causing significant disruption to traditional procurement strategies, with truckload fleets reporting that stricter regulatory enforcement has materially reduced the available supply of trucks. Industry participants noted at a recent investor conference that routing guides are effectively crumbling, as contractual rates established earlier in the year are no longer holding. This environment is forcing many shippers to reprice their entire books of business to secure capacity. Logistics managers surveyed for the index expect these conditions to persist, forecasting a tight market over the next 12 months with pricing expectations remaining high at 87.

Broader logistics trends are also contributing to the strain, as the overall LMI crossed the 70-point threshold for the first time since March 2022. Inventory levels rose to 60.5 as retailers, particularly large downstream companies, rushed to bring in goods for the back-to-school season and to get ahead of potential tariffs and new ocean shipping surcharges. This influx of inventory has further constrained the warehousing sector, where capacity declined to 47.5 and prices rose to 73.8. The report highlights a shift from the wait-and-see approach seen earlier this spring to a more aggressive restocking strategy driven by resilient consumer spending.