US logistics report details huge cost increases in 2021
The leading annual US logistics report showed that logistics costs soared by 22.4% last year, to nearly US$1.85tn. These costs include transportation, warehousing and ancillary services, such as support and administration,
The State of Logistics Report, is produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm, Kearney The report said the increase was at a level equal to 8% of the US’s GDP, something not seen since the 2008 Credit Crunch.
Demand increased across every mode and service. Businesses desperate for reliable motor carrier capacity fuelled a 39.3% increase in spending on private fleets or dedicated contract carriage, to $415.2bn.
Meanwhile, inventory carrying costs jumped 25%, to $502bn, caused by surging demand for warehouse capacity, and supply chain congestion
Spending on sea freight services was up by 23.6%, as ocean carriers levied huge rate increases on international sea routes, making more money in 2021 than in the previous two decades combined.
Parcel-delivery services spending jumped 15.6%, producing a five-year compounded annual growth rate of 11.4%.
TradeLink funds supply chain & logistics expansion
TradeLink – a supply chain collaboration platform specialising in warehouse operations – has raised €12mn to enhance to scale its solution in logistics and supply chains.
TradeLink connects delivery partners – forwarders, suppliers, shippers, and warehouse operators – and automates digital paperwork, expected delivery time, load information, and communication.
Company CEO & Co-Founder Frederic Krahforst says the long-term goal is “to create an end-to-end digital collaboration platform for process orchestrations and document management between shippers, warehouses, and carriers”.
