bongdaso vn latestLogistics Managers’ Index (LMI)recorded itsthird-largest month-over-month declinein March 2025, underscoring growing concerns within bongdaso vn supply chain sector. According to bongdaso vn report, bongdaso vn index fell by5.6 pointsto57.1, marking its lowest level since August 2024. This steep decline trails only bongdaso vn disruptions caused by bongdaso vn early COVID-19 pandemic and bongdaso vn onset of bongdaso vn Russia–Ukraine conflict in terms of severity since bongdaso vn index was established nine years ago.
bongdaso vn LMI, a diffusion index where readings above 50 indicate expansion and those below 50 indicate contraction, had shown optimistic trends in January and February, reaching bongdaso vn highest levels since June 2022. However, March’s sudden reversal reflects an emerging strain across logistics networks.
“Respondents identified bongdaso vn dual pressures of inflation and impending tariffs as key drivers of their increasingly cautious outlook,” bongdaso vn report noted. “While a reading of 57.1 still indicates expansion, bongdaso vn concern lies in bongdaso vn sharp deviation from bongdaso vn upward trend seen since July 2023.”
Cost Subindexes Experience Broad Declines
bongdaso vn March decline was primarily driven by sharp reductions across all major cost and pricing components—inventories, warehousing, andtransportation—each of which had exceeded 70 in January, signaling robust growth. bongdaso vn current figures reflect a pronounced cooling following an aggressive inventory pull-forward earlier in bongdaso vn quarter, as companies raced to bring in goods ahead of impending tariff implementations.
Withnew U.S. import tariffstaking effect onApril 2, many businesses expedited shipments during January and February. This frontloading, while helping to avoid tariff-related costs, has now left supply chains temporarily saturated, softening pricing dynamics and slowing delivery flows.
Transportation Metrics Reverse Early Gains
bongdaso vn transportation segment showed clear signs of deceleration in March, reversing gains seen at bongdaso vn beginning of bongdaso vn year:
Transportation Capacityfell by 1.6 points to53.6, still marginally within expansion territory.
Utilizationdropped3.8 points to 54, whiletransportation pricesexperienced a sharp9-point decline to 56.4, marking their lowest reading sinceJuly 2022.
These figures reflect an increasingly sluggish freight environment. Notably, bongdaso vntransportation prices subindex dropped further to 51.1 in bongdaso vn second half of March, down from 60.5 in bongdaso vn first half. This brought it below bongdaso vn capacity index for bongdaso vn first time in months, indicating what analysts refer to as a“freight inversion”—a condition that typically signals a downturn in bongdaso vn transportation market.
“While this could prove to be a temporary fluctuation, a sustained decline in freight activity may foreshadow broader economic headwinds,” bongdaso vn report warned.
Despite bongdaso vn recent softness, respondents forecast a12-month forward outlookfor transportation prices of64, although this is13 points lower than in February, indicating moderated optimism.
Inventory Dynamics Shift Post-Tariffs
Inventory levels remained elevated in March, though growth decelerated:
bongdaso vninventory level subindexdeclined3.6 points to 61.2.
Downstream firmssuch as retailers reported higher inventory levels (66.7) thanupstream wholesalers (58.9), reversing bongdaso vn February trend.
Inventory costsdropped6.7 points to 70.6, with a similar divergence between downstream and upstream players.
This suggests that much of bongdaso vn frontloading activity has already occurred, leaving firms in a holding pattern as they evaluate bongdaso vn real impact of newly implemented trade regulations.
“Businesses are navigating a difficult balance—seeking to stock up before tariffs take full effect, while being cautious not to overstock and repeat bongdaso vn overcapacity issues experienced in 2022,” bongdaso vn report noted.
Warehousing Trends Reflect Upstream-to-Downstream Shift
Warehousing dynamics continued to evolve in response to bongdaso vn inventory shift:
Warehousing capacityincreased by1.8 points to 52.3, although it tightened significantly among downstream firms (47.9) as goods moved closer to end consumers.
Warehouse utilizationdropped5.8 points to 59.7.
Warehouse pricesfell sharply by16 points to 61, marking one of bongdaso vn steepest monthly declines in bongdaso vn dataset’s history.
Despite softening in bongdaso vn broader market,demand remains strong in select areas, particularly fromAsian third-party logistics (3PL) providersande-commerce companies, which continue to secure warehouse space across bongdaso vn U.S.
Looking ahead, downstream companies anticipate a surge in warehouse rental costs over bongdaso vn next year, projecting an index reading of81.3, compared to a more modest61.4from upstream firms.
Forward-Looking Sentiment Dips
bongdaso vn March survey revealed that overall supply chain optimism had moderated. Respondents reported aone-year forward LMI expectation of 60.6, down5.6 pointsfrom bongdaso vn February projection.
bongdaso vnLogistics Managers’ Indexis a collaborative initiative led byArizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and bongdaso vnUniversity of Nevada, Reno, conducted in partnership with bongdaso vnCouncil of Supply Chain Management Professionals (CSCMP). bongdaso vn index captures bongdaso vn sentiments of supply chain professionals across key performance indicators, providing a leading indicator of logistics sector trends.
Source: https://www.freightwaves.com/news/march-supply-chain-data-craters-following-inventory-pull-forward
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