LOMBARD, Ill., June 21, 2016 /PRNewswire/ -- The Council of Supply Chain Management Professionals (CSCMP) released its 27th Annual State of Logistics Report today during a press conference at the National Press Club in Washington, D.C. (hashtag #SofL). CSCMP collaborated with global strategic management consulting firm, A.T. Kearney, as the new author and researcher, with Penske Logistics continuing in its longstanding role as top supporter of the report.
"This highly anticipated 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," said Rick Blasgen, President and Chief Executive Officer of CSCMP.
The report includes: 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.
"It is a dynamic time for the logistics sector - macro economy, new business models, technology - we are pleased to support CSCMP in the development of this report," stated Sean Monahan, A.T. Kearney partner and co-author of the 2016 State of Logistics Report.
The report reveals total U.S. business logistics costs rose to $1.48 trillion in 2015, a 2.6 percent increase from the previous year, which represents a considerable slowdown from previous years.
"Supply chain transparency continues to grow in importance for shippers and third-party logistics providers," said Marc Althen, Penske Logistics President. "This is driving significant technological change for 3PLs and shippers alike as they collaborate and share more real-time information to enable data-driven business decisions and meet the growing needs of consumers."
Logistics Industry is Entering a New Era
Over the next decade, the logistics industry will enter a new era. Disruptive forces, including technology and operational constraints, threaten to fundamentally change the rules of the game.
Motor Carriers Are Experiencing Rate Weakness
Rates and demand for transportation are soft, and continue to fall.
Truck Driver Shortage Continues
Despite softening demand and slower rates, competition for drivers remains intense.
Parcel and Express Is Being Fueled by B2C
Parcel and express continues to grow, with the main drivers being the explosion of B2C e-commerce and omni-channel retail.
Water Shipping Is In Flux
Containerized shipping is experiencing significant overcapacity, creating a favorable rate environment for U.S. shippers.
Airfreight Experiencing Overcapacity and Falling Rates
Demand for airfreight services remains sluggish due to economic uncertainty, while overcapacity is being exacerbated by a shift to wide-body aircrafts.
Pipelines Are Catching Up with Demand
U.S. oil and gas production has surged over the past decade. U.S. pipeline investment will account for three-quarters of all planned capital investment in transportation modes.
Rail Volume Reduction
A steep decline in coal traffic and crude by rail, macroeconomic weakness, and a pause in the growth of intermodal traffic resulted in overall rail volume reduction.
Technology is Driving 3PLs
Technology continues to play a key role in the evolution of the 3PL market.
Want a deep dive of the report, including facts and figures for all highlights listed above? CSCMP's State of Logistics Report is complimentary to all CSCMP members as an exclusive member benefit. The report is also available for purchase for nonmembers. Find out more information here: https://cscmp.org/member-benefits/state-of-logistics
Since 1963, the Council of Supply Chain Management Professionals (CSCMP) has been the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession. With more than 9,000 members globally, representing business, government, and academia from 62 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management. To learn more, visit cscmp.org.
About Penske Logistics
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to leading companies around the world. Penske Logistics delivers value through its design, planning and execution in transportation, warehousing and freight management. To learn more visit www.PenskeLogistics.com.
About A.T. Kearney
A.T. Kearney is a leading global management consulting firm with offices in more than 40 countries. Since 1926, A.T. Kearney has served as trusted advisors to the world's foremost organizations. A.T. Kearney is a partner-owned firm, committed to helping clients achieve immediate impact and growing advantage on their most mission-critical issues. To learn more, visit atkearney.com.
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SOURCE Penske Logistics