The Logistics Manager’s Index decreased -5.6 pts to 57.1 in March, the lowest reading since August 2024 and down -0.8 pts YoY, indicating a departure from the rapid growth observed in January and February, potentially influenced by upcoming tariffs.

• The MoM declines in Inventory Costs (-6.7 pts to 70.6), Warehousing Prices (-16.0 pts to 61.0), and Transportation Prices (-9.0 pts to 56.4) may reflect a slowdown in import activity after an initial surge to get ahead of anticipated tariffs.
• Downstream Inventory Levels expanded 7.8 pts faster than Upstream levels MoM, reaching 66.7, suggesting that businesses pulled forward inventory in anticipation of tariffs.

• A negative freight inversion was observed in the latter half of March, with Transportation Capacity expanding faster than Transportation Prices, potentially indicating a future downturn in the transportation market amid tariff-related uncertainties.
• Future predictions for the overall LMI indicate a slower rate of expansion at 60.6, down -5.6 pts from February’s forecast, with expectations of Warehousing Capacity contracting to 45.5 over the next 12 months in a potentially tariff-impacted environment.