<p data-path-to-node="2"><b data-path-to-node="2" data-index-in-node="0">RENO</b> — ITS Logistics has released its June 2026 Supply Chain Report, highlighting a challenging operational landscape for shippers as energy-driven inflation pushes overheads to levels not seen in two years. The report underscores that rising fuel costs, combined with disciplined capacity management by carriers, are driving up prices even while underlying demand remains relatively subdued.</p><h4 data-path-to-node="3">Key Findings from the June Report:</h4><ul data-path-to-node="4"><li><p data-path-to-node="4,0,0"><b data-path-to-node="4,0,0" data-index-in-node="0">Record Transportation Costs:</b> The Logistics Managers’ Index (LMI) for transportation prices reached a record high of 96.0 in May 2026. Rates for dry van and refrigerated (reefer) capacity continue to hover significantly above the five-year historical average, maintaining pressure on freight budgets.</p></li><li><p data-path-to-node="4,1,0"><b data-path-to-node="4,1,0" data-index-in-node="0">Rising Warehousing Overheads:</b> Holding costs for inventory spiked significantly in May, with the LMI Inventory Costs reading jumping 9.4 points to 84.1—the highest level since May 2022. This confirms that warehousing expenses are climbing independently of volume, creating a persistent financial burden for businesses.</p></li><li><p data-path-to-node="4,2,0"><b data-path-to-node="4,2,0" data-index-in-node="0">Carrier Network Restructuring:</b> The report notes that major parcel carriers, including UPS and FedEx, are aggressively consolidating their networks, which is further increasing revenue per package and reducing service flexibility for shippers.</p></li></ul><p data-path-to-node="5"><b data-path-to-node="5" data-index-in-node="0">Strategic Outlook for Shippers:</b>
ITS Logistics executives have warned that shippers relying on static network designs or single-carrier strategies are bearing the full impact of these elevated costs. With discretionary consumer spending increasingly diverted toward fuel and food essentials, freight volumes face further uncertainty heading into the upcoming peak season. Industry experts suggest that the "baseline" for cost control has shifted, necessitating a move toward multi-carrier strategies, inventory positioning closer to demand centers, and advanced predictive modeling to mitigate the effects of current market volatility.</p>