Monday, June 18, 2012

U.S. Supply Chain and Logistics Industry Rebound Led by Trucking, Rail

Total U.S. business logistics costs in 2011 rose to $1.28 trillion, a 6.6% increase from the previous year and accounting for 8.5% of the U.S. gross domestic product, according to the Council of Supply Chain Management Professionals' 23rd Annual "State of Logistics Report," presented by Penske Logistics.

This year's report reveals that with overall revenue 15.3% higher than 2010, railroads 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% in 2011.

Inventory carrying costs in 2011 continued their rising trend and overall inventories have returned to pre-recession levels, which could be a cause for concern for the economy. The growth has occurred among wholesalers and manufacturers while retail inventories remained flat, indicating that inventory management processes have changed.

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