WASHINGTON – Logistics costs across all industries in the U.S. hit $1.85 trillion in 2021, a 22.4% increase over 2020. The number represents 8% of 2021’s $23 trillion GDP.
Here are the key findings of the Council of Supply Chain Management Professionals‘ annual State of Logistics report:
- Inventory-carrying costs rose by 25.9% in 2021, and transportation costs jumped 21.7%. This led to uneven supply chains and inconsistent product availability for consumers (both in-person and online).
- Efforts to increase multi-shoring are expected to accelerate. Companies are seeking to have operations move closer to the U.S., to respond quicker to fluctuating market demands.
- Spending on ocean freight transit rose 23.6% for the year, and carriers made more money in 2021 than in the prior 20 years combined.
- Spending on private trucking and transport fleets or dedicated contract services surged 39.3% to $415.2 billion.
- Inventory carrying costs rose 25% to $502 billion.
- Spending on parcel delivery climbed 15.6% and saw a five-year annual growth rate of 11.4%.
- Last-mile delivery volume is trending upward. The 2022 report notes that e-commerce sales grew 10% last year (to $871 billion), accounting for 14% of U.S. retail sales.
- Trucking freight continues to see more volume and opportunities. With road freight accounting for the largest segment of the U.S. supply chain spend, it expanded by 23.4%, to a lofty $831 billion spend.
See a summary of the report here.
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Robert Dalheim, senior editor of case goods and global sourcing, has been writing about the woodworking industry and business news since 2015. He is a graduate of Northern Illinois University with degrees in journalism and political science. Contact Bobby at [email protected] or by calling (336) 605-3815.
