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Report - USA - Suggests rising logistics costs to drive industry change
Cheap transport has been the unstated assumption on which so much of the world’s economy has been based...
Denver,CO,USA -Transport Intelligence -18 August 2006: -- Lean inventory and globally sourced supply chains depend on cheap transport. However the consequent huge demand for transport has unsurprisingly resulted in price increases... Greater demand has pushed-up the price of fuel and, in developed countries, tight labour markets have resulted in higher wage costs, particularly for truck drivers. In economies such as the US the infrastructure is also having difficulty coping with the level of demand... According to a recent research note from the US based warehousing property company ProLogis, the effects of these increased transport costs has been to change the way that both American shippers and LSPs construct their logistics systems... According to the Denver based academic, Dr Paul Nuzum, who wrote the report, the opportunity and desire by shippers to beat down transport costs has lessened. The effects of congestion have combined with higher costs so that “capacity, reliability and rate stability” are the objectives of major shippers in buying transport services...
posted by Unknown @ 3:04 PM
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