CSCMP's 29th Annual State of Logistics Report Released in Washington, D.C. Today!

CSCMP's 29th Annual State of Logistics Report®, authored by A.T. Kearney and presented by Penske Logistics, has tracked and measured all costs associated with moving freight through the U.S. supply chain since 1988.

Each year, the report presents an overview of the economy during the past year, the logistics industry’s key trends, and the total U.S. logistics costs for the previous year and lays out future and potential trends.

The "State of Logistics Report®" is widely used by supply chain management and logistics professionals and organizations as the premier benchmark for US logistics activity.

Excerpt from the report's Executive Summary:

Carriers take the wheel in 2017

A logistics industry that entered 2017 amid widespread uncertainty emerged with clear hallmarks of a strong seller's market. Demand revved up quickly, triggering freight capacity shortages that gave carriers leverage to raise prices after years of downward rate pressure.

Fueling the turnaround were healthy economic growth, low unemployment, resurgent consumer spending, and anticipated benefits from tax cuts. These forces who no signs of easing in 2018, although new tariffs and fears of trade wars cloud the outlook.

Top Takeaways for Shippers/Corporations:

• Rates will continue to be elevated for the foreseeable future—at least until 2020—because the power rests with the carrier. They are in a constrained environment where they have the ability to pass through rate increases and choose who their customers are.
• Shippers will need to work to be the shipper of choice to ensure capacity is available. “You have to make them want to work with you,” A.T. Kearney Partner and report contributor, Sean Monahan, said.
• Shippers should be aggressive when exploring transportation options and explore everything from contract vs. spot rates to modes. “Really look at whether or not you are making the right choices and utilizing the right fleet or contract terms versus the use of the spot market,” Monahan said. “Are you taking advantage of every opportunity to use intermodal? Have you really looked at your network to make sure your network is as efficient as possible?”

Top Takeaways for Retail Consumers:

• The economy is being driven in large part by stronger consumer spending.
• Transportation costs are increasing, and those increases will come through in price increases for things that consumers buy.
• When consumers look at their shipping choices, particularly related to e-commerce, they need to think about the decisions they’re making. Those who are willing to wait for a delivery or bundle items together may be able to get better pricing.

Top Takeaways for Carriers:

• Revenues are increasing.
• Although revenues are on the rise, operating ratios are not, meaning the revenue is not as profitable as it might have been.
• Carriers must focus on efficiency, especially as fuel costs and driver wages rise. “They should all be taking a step back to say, ‘What can we do to be as efficient as possible? Are there customers that are more profitable than others?’ When you have the power and the opportunity, you can choose which shippers you serve,” Monahan said. “Are you picking those that are more profitable or the ones that let you turn the truck rapidly?”

CSCMP's 29th Annual State of Logistics Report® was released today.  Purchase your copy of the report at cscmp.org.

Exclusive Membership Offer

The Annual State of Logistics Report® is a CSCMP member benefit and is complimentary for all CSCMP members.  Now through July 1, 2018, when you purchase the 29th Annual State of Logistics Report®, you will also receive a complimentary CSCMP professional membership for one year, a value of $325. 

In addition to accessing the hottest supply chain industry report, you will also get access to all the benefits of a CSCMP membership!   

Simply purchase the 29th Annual State of Logistics Report® with the coupon code, "SOFL18" and you'll receive your complimentary individual membership from CSCMP within one business day.