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Rises - USA - Trucking Costs Continue Climb
Collaboration could ease the pain
ALEXANDRIA, Va,USA -Logistics Management (Newton,MA), by Traci Purdum -March 1, 2006 -- Forget about lean practices and kaizen blitzes. If you can't ship the products you've worked so hard developing, what's the point?... While the logistics landscape isn't quite that bleak, rising shipping costs are showing no sign of coming down... In the 2005 IndustryWeek Value-Chain Survey, which was conducted in conjunction with IBM Business Consulting Services, 51.2% of the 650 respondents stated that total logistics costs as a percentage of sales were 10.1% or greater in 2005. In 2003 only 20% of companies stated their logistics costs were more than 10% of their total sales... And according to the U.S. Census Bureau's most-recent annual survey, the truck transportation industry grew 10.4% to $186 billion in 2004... Add to that the American Trucking Associations' (ATA) report, U.S. Freight Transportation Forecast to 2016 -- which states that trucking will increase its share of the nation's freight pool in the next decade -- and you have to wonder how that mixes with the news that there is a trucker shortage -- a 20,000-truck-driver deficit in 2005 according to ATA. That number will rise to 111,000 by 2014 if current demographic trends continue...
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