Business logistics costs last year were on par with 2005 and still well below the pre-recession years, according to the 22nd annual State of Logistics Report from the Council of Supply Chain Management Professionals.
Since 1988, the report has tracked and measured all costs associated with moving goods through the US supply chain, and this year's analysis shows that:
In 2010, business logistics costs rose to 8.3 percent of US gross domestic product that's up from 7.7 percent in 2009.
The cost of the US business logistics system jumped to 10.4 percent in 2010, making up for more than half of the decline in 2009. In 2010, costs increased to $114 billion to a total of $1.2 trillion.
Inventory carrying costs increased 10.3 percent last year, thanks to higher costs for taxes, obsolescence, depreciation and insurance, which were offset by a further drop in the inventory carrying rate and warehousing costs.
Transportation costs rose 10.3 percent from 2009 levels. Trucking lagged behind the performance of other modes, rising only 9.3 percent compared to an average of 15.4 percent for the other modes combined.
Manufacturing and business spending were the bright spots during much of 2010, while consumer goods production was almost flat. Industrial production was up 5.3 percent in 2010, after declining 11.2 percent the year before.
Taken altogether, the data in this reports nicely illustrates the volatility we endured in 2010. Unfortunately, though , it appears we're not out of the woods , yet. As CSCMP says in it press release:
"The recovery from the recession has been elusive and more prolonged than any other in US history, with the slow growth presenting another year of challenges for the logistics industry."