Transportation prices climbed 3.1 points to 90 in August on the Logistics Managers’ Index, even as capacity remained deep in contraction at 40. The overall LMI fell 2.2 points from July to 66.6, primarily because inventory growth slowed. Capacity nevertheless improved 11 points from July, marking its slowest contraction in six months, while transportation utilization rose 5.6 points to 70.6, only the second reading above 70 in five years. Manufacturing activity remained in expansion, with the ISM Manufacturing PMI at 54.6 and the New Orders Index at 53.7 for its eighth consecutive month of growth. Julie Van de Kamp said carriers need higher rates to support investment in drivers, safety and maintenance, and LMI respondents expect transportation conditions to remain tight over the next 12 months. The report highlights the Sonar Tender Rejection Index, Sonar Truckload Volume Index and National Truckload Index as key indicators for capacity, freight volumes and spot rates.