July Logistics Index Shows Falling Transport Capacity, Rising Costs

The July 2026 Logistics Managers Index (LMI) slipped 2.2 points to 68.9, indicating a slowdown in overall logistics expansion. The primary driver was a sharp decline in transportation capacity, which fell to a reading of 28.4 – the second‑fastest contraction on record – while transportation utilization dropped 9.7 points to 65.

Freight rates remain elevated, with transportation prices at 86.9, and warehousing prices reaching 75.5, the highest since January 2025. Inventory costs continued to rise, and tariffs were cited as a lingering factor pressuring retailers and inventory levels. Werner Enterprises reported a 34% reduction in its one‑way truckload fleet, boosting revenue per truck but underscoring the tightness of available capacity. Overall, respondents expect the LMI to hold near 70 over the next year, reflecting cautious optimism despite the current constraints.