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Aug 13, 2008

Logistics Costs * USA - Hit Record High

She adds, the industry has reacted well, with pricing power, now firmly in the hands of the manufacturers and retailers, rather than the freight carriers...

Cleveland,OH,USA -IndustryWeek, by David Blanchard -Sept. 1, 2008: -- Good supply chain practices are helping keep a rough situation from getting worse... The cost of logistics in the United States rose by nearly $100 billion in the past year, to $1.4 trillion, a record high for the fourth-consecutive year and the equivalent of 10.1% of the U.S. gross domestic product. That represents a jump of 7% from the $1.3 trillion in costs for the previous year, and that's actually good news, since a year ago the increase was in the double digits (11%)... "For the second year in a row the U.S. supply chain industry has had to operate in a soft demand environment, with soaring fuel prices and even more pressure to perform efficiently," notes transportation consultant Rosalyn Wilson, author of the annual State of Logistics Report for the Council of Supply Chain Management Professionals (CSCMP). She adds, the industry has reacted well, with pricing power, now firmly in the hands of the manufacturers and retailers, rather than the freight carriers...

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