Freight Capacity Plummets, Prices Skyrocket

Freight capacity plummeted in April, marking the second-worst drop in nearly a decade, with a Logistics Managers Index reading of 28.4 for transportation. Prices skyrocketed to 95, the fastest growth rate in ages, creating an unprecedented gap of 67 points. The Strait of Hormuz closure exacerbated the situation, making freight tighter and pricier than ever. Supply chain professionals, particularly those at large companies and upstream manufacturers, are feeling the pinch, stockpiling to offset rising fuel bills. Warehousing also tightened, with capacity at 45.5, utilization at 64.4, and prices climbing to 72.7. Overall logistics costs surged to 242.4, the fastest since April 2022. Managers predict tight conditions ahead, with capacity at 33.2, utilization at 74.5, and prices near 94 for the next year. This supply-side pressure could make inflation fights tougher, as higher rates may not alleviate shortages and could even slow supply further. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/98804ef3f45e034a