Transportation Price Index Hits 92.7 as Truck Capacity Contracts

Transportation prices climbed deeper into inflationary territory during September as available truck capacity tightened. FreightWaves reported October 6 that the Logistics Managers' Index placed transportation prices at 92.7, up 2.7 points from August. Because the index treats any reading above 50 as expansion, the result shows unusually strong price growth rather than a modest seasonal increase. The pricing measure has now been at or above 90 in five of the past six months.

Capacity moved the other way. The transportation-capacity index fell 5.6 points to 34.4, signaling a steep contraction and extending its run below 50 to 10 consecutive months. Transportation utilization registered 66.1, still expanding but at a slower rate than in August. Survey respondents expect the imbalance to persist over the next year, returning future readings of 37.9 for capacity, 70.8 for utilization and 86.1 for pricing.

The broader logistics picture adds pressure. The overall LMI rose to 70.2, its second-highest level in four and a half years. Inventory levels reached 58.9 as companies continued positioning goods for holiday demand, while warehouse capacity dropped into contraction at 39.3. Aggregate inventory, warehousing and transportation costs reached 246.1, the highest combined reading since April 2022.

Carriers should use the tight market to evaluate lanes, service commitments and cost recovery rather than assume every higher rate improves margin. Shippers should confirm backup capacity, reduce avoidable dwell and communicate holiday forecasts early. Owner-operators need to compare gross rates with diesel, insurance, maintenance and deadhead. The September data point to better carrier pricing power, but disciplined load selection and reliable service remain essential when both customers and equipment are under pressure.