Freight Market Sees Covid-Era Extremes Return as Capacity Tightens
Freight Market Sees Covid-Era Extremes Return as Capacity TightensTight Capacity and Rising Rates Signal Major Shift in Freight Market The freight market is once again experiencing conditions similar to the Covid-era boom, according to the latest Logistics Managers’ Index (LMI). March data shows a sharp tightening in transportation capacity alongside rapid growth in freight rates. As a result, the market is entering one of its most extreme phases since 2021. The LMI reported a transportation capacity reading of 39.2, indicating strong contraction. At the same time, transportation pricing surged to 89.4, reflecting aggressive rate growth. This wide gap between capacity and pricing marks the largest imbalance since November 2021. Capacity Drops While Pricing Accelerates Transportation capacity declined for the fourth consecutive month. Meanwhile, pricing jumped significantly, reaching its fastest growth rate since March 2022. Several factors are driving this trend: Regulatory enforcement reducing available drivers Restrictions on non-domiciled CDLs Crackdowns…
