We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » A new era for logistics
Direct Connection

A new era for logistics

August 26, 2016
Rick Blasgen
No Comments

Every year in June, the Council of Supply Chain Management Professionals (CSCMP) releases its annual "State of Logistics Report" at a press conference in Washington, D.C., with Penske Logistics as the report's top supporter. And every year, this highly anticipated research is cited around the world as the authoritative analysis of the impact logistics activity has on the U.S. economy.

In those respects, the 2016 "State of Logistics Report" was just like its predecessors. But the new report also featured several changes that will enhance its value for our members and others who read it. First, CSCMP collaborated with the global management consulting firm A.T. Kearney, the report's new author and researcher. Second, A.T. Kearney has used some new data sources and analysis methodologies. And finally, the report has been expanded to include a narrative about the economic environment impacting logistics, insights from interviews with industry leaders, a spotlight on relevant trends, and a strategic view of the state of the industry.

Change is also the overarching theme of the 2016 "State of Logistics Report." As this year's title, "Logistics in Transition: New Drivers at the Wheel," suggests, the factors underlying logistics costs and trends are shifting. Here are just a few examples from the report's findings:

The logistics industry is entering a new era. Over the next decade, disruptive forces, including technology and operational constraints, threaten to fundamentally change the rules of the game.

Logistics costs are rising more slowly. Total U.S. business logistics costs rose to $1.48 trillion in 2015, a 2.6 percent increase from the previous year and a considerably slower rise than we've seen in the past few years.

Transportation demand and rates are down, while capacity is up. Demand for motor carriage, containerized shipping, airfreight services, and coal traffic and crude oil by rail have declined. Rates in some sectors are soft and continue to fall. Ocean and air are both experiencing significant overcapacity, creating a favorable rate environment for U.S. shippers.

Growth in parcel and express is being fueled by e-commerce. A notable exception is the parcel and express sector, which continues to grow, with the main drivers being the explosion of business-to-consumer (B2C) e-commerce and omnichannel retail.

Technology is changing 3PLs. Technology will continue to play a key role in the evolution of the third-party logistics market. There's something for every logistics and supply chain manager in this report, including the statistics and industry insights that will not only help you do your job better, but will also better prepare you for the business demands ahead. I hope you'll read the 2016 "State of Logistics Report" from cover to cover. The report is complimentary for all CSCMP members as an exclusive member benefit and is available for purchase by nonmembers. I invite you to visit cscmp.org/member-benefits/state-of-logistics for more information.

    • Related Articles

      A great year for supply chain and logistics

      A new crossroads

      A new tool to measure and assess risk

    Rick Blasgen is President and Chief Executive Officer of the Council of Supply Chain Management Professionals (CSCMP).

    Recent Articles by Rick Blasgen

    A final farewell

    Look to your leaders

    Planning ahead

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    Household goods customs broker thumb

    Household Goods Customs Broker

    Viewer Contributed
    Household Goods Customs Broker :Gallagher Transport International is a highly experienced customs broker specializing in household goods, providing efficient and cost-effective customs clearance services while ensuring compliance with all necessary regulations. Our Services Include: Importing & Exporting...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing