February’s Logistics Managers’ Index showed a freight market recovery in full swing. The report indicates a significant recovery, with February showing a notable tightening in transportation capacity. The LMI recorded a reading of 41 for transportation capacity, a decrease from January, comparable to the COVID shipping boom peak in November 2021. Large companies experienced a contraction rate of 32.6. Severe winter storms and increased regulatory enforcement contributed to this capacity squeeze. Despite challenges, demand remains strong, with FreightWaves’ flatbed tender rejection rate exceeding 32% for only the second time in history, suggesting increased upstream activity. FreightWaves’ dry van data indicates significant capacity tightening, with elevated readings during a typically weak season. Transportation utilization rose to 61.9, the highest since May 2022, while transportation prices surged to levels not seen in four years. Upstream firms reported higher pricing sentiment than downstream retailers. The report notes uncertainty regarding tariff policy changes and global conflicts but highlights a robust freight market driven by high turnover rates. Logistics managers anticipate continued and intensified market conditions, with transportation prices expected to expand significantly over the next year. The overall LMI increased to 61.5 in February, marking the highest reading in a year. Inventory levels showed modest expansion, with small companies reporting growth and large companies experiencing contraction. Inventory costs remained inflationary, and warehousing capacity stayed neutral. Warehousing utilization increased significantly, while warehousing prices continued to grow, albeit at a slower rate.