Thursday 24th Aug 2017 - Logistics & Supply Chain

US business logistics costs rise 6.6 per cent

US business logistics costs rose 6.6 per cent last year to a total of $1.28 trillion – and now account for 8.5 per cent of US gross domestic product, according to the latest State of Logistics report from the Council of Supply Chain Management Professionals.

This year’s report reveals that with overall revenue 15.3 per cent higher than 2010, railways gained market share, especially in intermodal, and did not experience capacity problems faced by the trucking sector.

Trucking companies are also using intermodal rail help to offset the impacts of driver shortages and the costs of acquiring and maintaining new equipment.

In spite of tightening capacity and an overall decline in volume, trucking rates were up 5 to 15 per cent in 2011.

The report, authored by transport consultant Rosalyn Wilson of Delcan and supported by Penske Logistics, found that inventory carrying costs in 2011 continued a rising trend.

“Overall inventories have returned to pre-recession levels, which could be a cause for concern for the economy, it said. “The growth has occurred among wholesalers and manufacturers while retail inventories remained flat, indicating that inventory management processes have changed.”

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