November LMI reading and trend

The Logistics Managers Index (LMI) recorded a November reading of 55.7, indicating continued growth but at a slower pace. Readings above 50 signal expansion, and the November figure follows matching scores of 57.4 in both September and October. This marks the ninth consecutive month the LMI has remained below its all-time overall average of 61.4.

Who produces the LMI and institutional partners

The monthly LMI is a collaborative research project involving scholars from several universities and industry partners. Participating institutions include:

• Arizona State University
• Colorado State University
• University of Nevada, Reno
• Florida Atlantic University
• Rutgers University

The index also receives support from the Council of Supply Chain Management Professionals (CSCMP).

Authors and contributors of the report

The LMI edition released in November was authored by a team of logistics researchers: Zac Rogers, Ph.D., Steven Carnovale, Ph.D., Shen Yeniyurt, Ph.D., Ron Lembke, Ph.D., and Dale Rogers, Ph.D..

Components used to calculate the LMI

The index reading is derived from eight distinct logistics components that measure activity across inventory, warehousing and transportation. Those components are:

1. Inventory levels
2. Inventory costs
3. Warehousing capacity
4. Warehousing utilization
5. Warehousing prices
6. Transportation capacity
7. Transportation utilization
8. Transportation prices

Overall drivers of the November slowdown

The report notes the November easing was driven by weakness in inventory and warehousing measures, while transportation showed pockets of expansion.

"Similar to dynamics observed in October, this slowdown is driven by a continued softening of inventory and warehousing metrics but tempered by some expansion in transportation. Unlike last month, in November the downward pressures slightly exceeded upward momentum."

Warehousing sub-index details

Warehousing utilization fell by 9.0% in November. The LMI team highlighted that respondents had not previously reported a month-over-month reduction in the share of available warehousing space in use, noting this change is tied to a continued rundown of large inventory positions that were accumulated during the first nine months of 2025. That inventory drawdown has softened demand in the warehouse market.

Transportation sub-index details and market health

Transportation metrics continued an upward trend in November. The decrease in Transportation Capacity recorded the lowest rate of expansion since September 2024 and represented only the third time capacity was effectively flat since March 2022, when the freight market reversed direction.

At the same time, Transportation Prices increased at their fastest pace since February. The 14.9-point gap between Transportation Prices and Capacity was the second largest since April 2022, exceeded only by January of this year. Taken together, the report describes the freight market as relatively healthy for November.

Retail-driven price movements and seasonal implications

The LMI observed that gains in transportation price metrics were primarily driven by downstream retailers, which moved from 70.6 to 63.0. Price growth was stronger in the first half of the month (70.0) than in the second half (60.8), suggesting the improvement is linked to the seasonal flow of inventory toward retailers.

The authors caution that these transportation gains could diminish after the holidays if seasonal shipping patterns change.

Implications for logistics markets

The November findings portray a logistics landscape with mixed signals: inventory reductions and weakening warehousing demand are pulling the index down, while transportation demand and pricing remain supportive. Observers should watch post-holiday flows to see whether transportation strength endures or recedes as inventories and seasonal shipping patterns evolve.