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CONTENTS
• State of Logistics Union
• Hanson Velocites
• Truck Capacity
• Maple Leaf Farms
• Letter from the President
• Hanson ASI Rating
• Front Page
• Visit the Hanson Website
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State of the Logistics Union 2006
The 17th “Annual State of Logistics Report", sponsored by the Council of Supply Chain Management Professionals (CSCMP), is available on CSCMP’s site free of charge, but only for members.
A few highlights:
- Due to pressures on transportation costs and higher inventory carrying costs, logistics cost as a percent of U.S. gross domestic product (GDP) surged to 9.5% from 8.8% in 2004. Total logistics spend 15.2% greater in 2005 than 2004. After years of decline, logistics spend as percent of GDP is on the rise, and is expected to return over 10% again very soon.
- Total transportation costs were up 14.1%.
- Total inventory carrying costs were up 17%, due to higher interests rates and higher inventory levels as a result of offshore sourcing and longer supply chains. The report cites the move from large, more centralized distribution centers to smaller ones closer to customers, increasing total network inventory.
- Warehouse rental rates increased 5% in 2005 overall, though varied of course by individual market. Vacancy rates dropped nationally.
- Driver turnover rate for large truckers in 2005 was 130%, the highest level yet recorded.
- Spending on rail transportation increased 14.3%.
- Airfreight spend increased a very healthy 17.6%.
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For additional information, visit www.cscmp.org.
Visit the Hanson Logistics website, click here.
Contact Hanson Logistics, click here.
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