The Council of Supply Chain Management Professionals (CSCMP), in partnership with Penske Logistics, released its 24th annual State of Logistics Report® on June 19, 2013. The report, authored by Rosalyn Wilson, revealed that total U.S. business logistics costs rose to \$1.33 trillion in 2012, a 3.4% increase from 2011, representing 8.5% of the U.S. GDP. It suggests that the logistics industry has moved beyond recovery and entered a “new normal” phase, characterized by economic uncertainty and structural shifts.
Key Findings:
- Transportation Costs: Increased by only 3.0% due to weak and inconsistent freight volumes and rate pressures. Trucking costs rose 2.9%, but upcoming FMCSA regulations are expected to reduce driver productivity and tighten capacity, likely increasing future rates.
- Rail: Railroad costs rose 4.9%, with intermodal traffic performing well despite carload traffic declining by 3.1%. Rates were kept in check by truck competition.
- Inland Waterways: Drought-related river issues disrupted barge traffic, causing closures and rate hikes—agricultural shipping rates rose nearly 25%.
- Inventory and Warehousing: Record inventory levels led to rising warehousing costs (up 7.6%) and a 2.6% increase in inventory-related expenses. Low interest rates helped offset some costs.
Industry Outlook:
The report emphasizes that a well-managed supply chain offers a competitive advantage, even amid economic uncertainty. Outsourcing to logistics providers is growing, as companies seek to reduce costs and improve service levels.
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