Inventory levels suggest demand will not be a concern in early 2025

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Photo by Jim Allen - Freight
Photo by Jim Allen – Freight

The table of the week. Logitsics Manager Index – Inventory Level Sonar: Lmi.invl

Logistics Manager Index (Lmi:A key gauge of inventory levels in December showed that total foreclosures were essentially flat compared to November, suggesting that companies are accurately forecasting demand for the holiday season between inventory levels, offering significant shipping opportunities in early 2025.

The most recent Cargo transportation Podcast, Dr. Zac Rogers From Colorado State University highlighted the strong differences between current and current flow activity within a circuit.

In this context, “flow” refers to the storage of finished goods over an extended period of time. These opportunities are usually located near ports like Los Angeles (commonly called the Inland Empire) and Savannah, Ga. In recent years, Phoenix Cities like AZ, AZ, and Laredo have seen a rapid growth in such facilities due to their proximity to real estate and US import gateways.

In contrast, the downstream, closer to the users, have expanded and developed higher efficiency volumes to operate at higher speeds.These capabilities are generally called distribution or fulfillment centers.

Dr. Rogers noted that inventories rose moderately in December, with readings above 50 indicating expansion and below 50 indicating contraction scored an amazing 33.9, suggesting a highly successful holiday season for many companies.

The takeaway is that upstreams may have preferred in response to such tariff concerns, while downstream companies may have underestimated customer demand.

It is hoped that some retailers aimed to reduce inventories in response to warehousing costs.

However, this argument has a flaw. These opportunities do not cost less inventory, and because of insufficient stocks, the revenue opportunities are less than those of warehouse goods.In addition, freight forwarders are not their import operation, which is a counter to cost control theory.

 
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