US logistics business costs rise by 22.4% to $1.85 trn in 2021: Report

25 Jun '22

2 min read

Pic: Shutterstock

US-based supply chains are out of sync, while adjusting to short-term changes and perhaps uncovering long-term solutions, according to the 2022 State of Logistics Report. In 2021, the US business logistics costs (USBLC) was elevated by 22.4 per cent to $1.85 trillion, representing 8 per cent of 2021's $23 trillion gross domestic product (GDP).

Business inventories dropped to near historic lows, but the costs associated with storing, handling and financing these items rose considerably, the 33^rd such report says.

The annual report was released for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by Penske Logistics.

Inventory-carrying costs rose by 25.9 per cent in 2021, and transportation costs jumped 21.7 per cent. 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 United States, to respond quicker to fluctuating market demands, a press release from Penske Logistics said.

Penske Logistics is a Penske Transportation Solutions company with operations in North America, South America, Europe and Asia.

Last-mile delivery volume is trending upward. The 2022 report notes that e-commerce sales grew 10 per cent last year to $871 billion, accounting for 14 per cent of US retail sales.

Trucking freight continues to see more volume and opportunities. With road freight accounting for the largest segment of the US supply chain spending, it expanded by 23.4 per cent to a lofty $831 billion.

Fibre2Fashion News Desk (DS)

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