Supply Chain Pipeline Efficiency Plummets 49% in Q2 as Freight Costs Squeeze Buyers
Event summary
- LeadCoverage's Q2 2026 Supply Chain Growth Index shows Logistics Growth Efficiency Ratio (LGER) fell 49% to $11.35 from $22.39 in Q1.
- Freight rates climbed 29% YoY to $3.11 per mile, while diesel hit a record $6.53 per gallon, squeezing budgets for new provider contracts.
- Three 3PL and broker programs targeting shippers drove ~68% of total pipeline ($117M of $173M) in Q2.
- Account-based marketing (ABM) and intent-based tactics doubled the median LGER of non-users.
The big picture
The Q2 2026 decline in supply chain pipeline efficiency highlights the disconnect between freight rate recovery and buyer urgency. While carriers benefited from higher prices due to reduced capacity, shippers and carriers alike faced budget constraints that slowed new buying decisions. This trend underscores the strategic importance of targeted, shipper-facing programs in a high-cost environment. The data suggests that broad-market campaigns are less effective when buyers are prioritizing cost management over new provider adoption.
What we're watching
- Cost Pressure Dynamics
- How sustained freight and fuel cost increases will affect shipper and carrier budgets for new provider contracts.
- Pipeline Efficiency
- Whether targeted shipper-facing programs can maintain their dominance in pipeline generation.
- Market Segmentation
- The pace at which the mean-to-median LGER ratio will shift, indicating potential winner-take-all dynamics.