Despite the ongoing recession in the United States, business logistics costs in 2010 reached $1.2 trillion, an increase of $114 billion from 2009. That's according to the latest edition of CSCMP's Annual "State of Logistics Report," which provides a benchmark for logistics activity in the United States. CSCMP released the report in mid-June.
Logistics accounted for 8.3 percent of the nation's gross domestic product (GDP) in 2010, up from 7.8 percent the previous year. The report defines total logistics costs as comprising four categories: carrying costs for inventory, transportation costs, shipper-related costs, and logistics administration costs.
Transportation costs last year amounted to $768 billion, a hike of 10.3 percent from 2009 levels. Inventory carrying costs, another key component in the logistics formula used in the report, totaled $396 billion last year, reflecting a 10.3 percent increase from last year.
For more details about the report's findings, watch for Supply Chain Quarterly's special issue on logistics and supply chain costs, coming in August.