![[Valid Atom 1.0]](valid-atom.png "Validate my Atom 1.0 feed")
REPORT * USA - Logistics industry suffers despite continuing demand
'State of Logistics' report: 'Surviving the Slump'
USA -Transport Intelligence (UK) -27 Jun 2008: -- The Council of Supply Chain Management Professionals (CSCMP), a worldwide organisation headquartered in the US, paints a grim picture of the state of that country's logistics sector in its latest 'State of Logistics' report, sub-titled 'Surviving the Slump', released at the beginning of this week... The council views the problems in the US economy as having a serious effect on the country's logistics market. Overall logistics costs have continued to rise, it says, pushing past the 10% of GDP barrier... However, states the report, one of the major causes of that is higher inventory costs. Levels of stock, particularly in retail locations, have risen as consumer demand has fallen, it says. Interestingly, the CSCP suggests that as supply chains have become longer, the more difficult it has been to react quickly to falling demand... The author of the report, Rosalyn Wilson, observes: "Pricing power is firmly in the hands of shippers now, not the carriers. As in 2006, fuel surcharges made up most of the revenue gains in the industry. However, there are far more reports of companies unable to fully recover increased fuel costs, either because their market will not allow them to pass them through or because of the lag as fuel prices climb daily." ... Another aspect of what is occasionally slightly alarming reading is the CSCMP assertions about the state of US transport infrastructure. Not only does the road system cause concern for the council, but it also cites senior executives in the rail sector as saying that there is insufficient capacity to support projected demand... Overall, the report suggests the state of transport infrastructure will combine with the loss of capacity to affect US logistics industry short-term growth prospects. Wilson observes: "Capacity is permanently leaving the industry as firms exit the market and sell their equipment in foreign markets. Investment in new capacity has dropped off and we can expect some very tight capacity restraints when the economy turns around."...Labels: reports
posted by Unknown @ 10:34 AM
0 Comments:
Post a Comment
<< Home