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State of Logistics: Buffeted by Crosswinds

Photo: Penske Logistics

The latest annual State of Logistics Report paints the industry not quite as storm-tossed, but as “buffeted by crosswinds as the pace of change accelerates,” according to the study's five authors, who are consultants with A.T. Kearney. Reflecting that reality, the report is titled “Accelerating into Uncertainty.”

Released this week by the Council of Supply Chain Management and again presented by Penske Logistics, the 46-page report “contains the statistics and industry insights that will not only help our members do their jobs better, but also better prepare them for the business demands ahead, in a very dynamic marketplace," according to Rick Blasgen, president and CEO of CSCMP.

The report features a “focused narrative” on the economic environment impacting logistics; insights from interviews with industry leaders, including shippers, carriers, and analysts; a spotlight on relevant trends; and a strategic “point of view” on the state of the industry.

"We believe readers will be interested in this year's report for the retrospective view on 2016 market dynamics," said Sean Monahan, A.T Kearney partner and report co-author. He added that the study also lays out a “forward-looking view on considerations for the coming 18 months and beyond."

This year's report shows the first decline in United States Business Logistics Costs (USBLC) since 2009—with that coming even as the surge in e-commerce sector drove up demand for parcel delivery services.

"Even in this current uneven economy, we are seeing upticks in demand for outsourced logistics services," pointed out Althen, president of Penske Logistics president.

Key findings of the report include:

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