2024 State of Logistics Report: Embracing Technology To Tackle Disruptions

The 2024 State of Logistics Report was unveiled at the National Press Club in Washington. It is produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by third-party supply chain provider Penske Logistics.

Highlights from the 2024 SoL report include:

• U.S. business logistics costs were $2.3 trillion per year, which translates to 8.7% of the national GDP;

• There are multiple reasons why demand has not yet fully recovered, chief among them are simultaneous geopolitical conflicts around the world, climate change (which has affected shipping lanes), high inflation, high interest rates, and apart from the U.S., sluggish demand;

• As a result of the economic headwinds and geopolitical instability, the continued fragmentation of global trade is complicating supply chain transactions. There were over 1,000 U.S. freight brokers that shuttered their doors since last year’s report was released;

• Some of the largest manufacturers and retailers are seeking to monetize their own logistics capabilities while viewing their supply chain successes as a service to market and profit from;

• Carriers have been plagued by high operating costs, while lackluster demand and the capacity glut have made it hard for them to charge the kinds of rates that would allow them to sustain rates and protect their margins;

• Third-party logistics providers continue to work through significant challenges right now, which include high operating and insurance costs, low freight rates and excess capacity. Will this lead to further industry consolidation?;

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