New Normal Sets in as U.S. Supply Chain and Logistics Industries’ Growth Slows, Costs Stay at 8.5% of GDP
The Council of Supply Chain Management Professionals (CSCMP) released its 24th annual “State of Logistics Report®” revealing that total U.S. business logistics costs rose in 2012 to $1.33 trillion. That’s a 3.4 percent increase from the previous year, remaining at 8.5 percent of the U.S. gross domestic product (GDP).
It is predicted that this pattern of sluggish growth will last through 2015.
This year’s report presents an overview of the economy during the past year, the logistics industry’s key trends and total U.S. logistics costs for 2012. It also suggests that the U.S. is no longer in recovery mode, but rather in the “new normal” for the economy and supply chain industry as a whole.
Findings include:
— Transportation costs were up 3.0 percent in 2012 due to weak and inconsistent shipment volumes and pressure to hold rates
— Truck transportation costs rose 2.9 percent in 2012; however, expected capacity pressures will push rates up quickly
— Railroad transportation costs rose 4.9 percent, increasing rail revenue per ton-mile 5.3 percent to 3.961 cents
— Warehousing costs increased 7.6 percent, but were still dwarfed by the 2.6 percent rise in expenses directly related to inventory levels, such as taxes, obsolescence, depreciation and insurance
— Ocean transportation costs fell by 0.9 percent last year as vessel capacity rose 7.2 percent.
Click here to learn more.
