Warehouse inventory at August Logistics Manager’s Index shows inventory is not moving.
Inventory costs are expanding at their second-fastest rate in 12 months because freight is sitting in warehouses.
LMI creators warn inflation is anticipated in the next two to three months as inventory makes its way to shelves.
The latest release of the Logistics Management Index for August shows inventory still sitting in warehouses and costs rising due to a lack of space.
Warehousing Capacity increased (+7.2) at 53.5.
“This is only the second time in the last six months that this metric has been in expansionary territory and is the highest reading since December of last year when inventories were run down during the holiday shopping season,” said Dale Rogers, professor in the supply chain management department at Arizona State University and one of the authors of the LMI.
This freight cocktail has LMI creators warning of inflation in the next several months.
