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Report * USA - Logistics costs drop for first time in six years
Total spending on U.S. logistics dropped to $1.3 trillion last year, a decrease of $49 billion from 2007
Washington,DC,USA -Logistics Management,by John D. Schulz -17 June 2009: -- For the first time in six years, total spending on U.S. logistics dropped to $1.3 trillion last year, a decrease of $49 billion from 2007. That’s the gist of the 20th Annual “State of Logistics Report” released by the Council of Supply Chain Professionals (CSCMP) on Wednesday... The annual respected benchmark report revealed the financial damage done to the sector by the ongoing recession. After rising by more than 50 percent the previous five years, business logistics costs fell to 9.4 percent of U.S. Gross Domestic Product last year. That is down from 10.1 percent in 2007... Transportation costs rose 2 percent, but that was not enough to offset the 13.2 percent decline in inventory carrying costs, primarily due to record-low interest rates last year. Transportation ($872 billion) now accounts for 6.1 percent of nominal GDP while inventory carrying costs ($420 billion) account for 2.9 percent of GDP... Trucking, which accounts for 78 percent of transport by revenue and half of all business logistics cost, was particularly hard hit, rising just 1.3 percent compared with 4.4 percent for the other modes (rail, barge, air cargo, oil pipelines and forwarders)... For shippers, this has resulted in bargain transport rates, especially in trucking and ocean transport, according to Rosalyn Wilson, the long-time author of the SoL report... Noting that the rails and trucking companies used to be “mortal enemies,” John Lanigan, a long-time veteran of Schneider Nation said, those days are over. “We’re not anymore,” he said. “Three of our 10 largest rail customers are trucking companies.”... (Photo from oocl.com: US unit train)
Labels: transport and logistics reports
posted by Unknown @ 4:27 AM
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