The Logistics Manager’s Index in the US declined to 69.5 in May 2026 from 69.9 in April, pointing to a slowdown in the logistics sector, although it is still the second fastest level of expansion since March 2022. Inventory levels slowed (-1.5 to 54.8) and warehousing capacity moved back from contraction to mild expansion (+5 to 50.5). Despite the slowdown in inventory expansion and increase in storage capacity, costs remain elevated. Inventory Costs are up (+9.4 to 84.1) which is the highest reading for this metric since May of 2022. Warehousing prices remain elevated as well (70.7 vs 72.7). Also, the transportation market has been tight, with prices growing at an unprecedented rate since the closure of the Strait of Hormuz. Transportation prices are up to a record high (+1 to 96). Transportation capacity continues to contract quickly (31.7 vs 28.4), and transportation utilization expansion remains elevated (69.5 vs 69.6).

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