The Council of Supply Chain Management Professionals (CSCMP) released its 27th annual State of Logistics Report during a press conference at the National Press Club in Washington DC. CSCMP collaborated with global strategic management consulting firm A T Kearney as the new author and researcher, with Penske Logistics continuing in its longstanding role as top supporter of the report.
This report includes a focused narrative on the economic environment impacting logistics; insights from interviews with industry leaders, including shippers, carriers, and analysts; a spotlight on relevant trends; and a strategic point of view on the state of the industry.
The report reveals total US business logistics costs rose to $1.48 trillion in 2015, a 2.6% increase from 2014 that represents a considerable slowdown from previous years.
Key observations of the report include:
•Over the next decade, the logistics industry will enter a new era. Disruptive forces, including technology and operational constraints, threaten to fundamentally change the rules of the game.
•Motor carriers are experiencing rate weakness. Rates and demand for transportation are soft and continue to fall.
•The truck driver shortage continues. Despite softening demand and slower rates, competition for drivers remains intense.
•Parcel and express is being fueled by B2C. Parcel and express continues to grow, with the main drivers being the explosion of B2C e-commerce and omni-channel retail.
•Water shipping is in flux. Containerized shipping is experiencing significant overcapacity, creating a favorable rate environment for US shippers.
•Demand for airfreight services remains sluggish due to economic uncertainty, while overcapacity is being exacerbated by a shift to wide-body aircrafts.
•US oil and gas production has surged over the past decade. US pipeline investment will account for three-quarters of all planned capital investment in transportation modes.
•A steep decline in coal traffic and crude by rail, macroeconomic weakness, and a pause in the growth of intermodal traffic resulted in overall rail volume reduction.
•Technology continues to play a key role in the evolution of the 3PL market.
Want to see more of the report, including facts and figures for all highlights listed above? This report is complimentary to all CSCMP members as an exclusive member benefit. The report is also available for purchase for non-members. Find out more information here.
To obtain complete information, access www.cscmp.org, www.PenskeLogistics.com, or www.atkearney.com.