Subscribe to our free, weekly email newsletter!


Logistics news: Analyst says ocean shippers will not see softer rates

By Patrick Burnson, Executive Editor
June 10, 2010

Rosalyn Wilson, a transportation consultant for Delcan Corporation, provided LM with an exclusive interview on the eve of the release of The 21st Annual “State of Logistics Report,” noting that disruptions in ocean carrier deployments has had dire consequences for shippers.

“The past couple of years have been very hard for vessel operators,” she said. “Given the weak demand for goods, they canceled orders for new buildings, and scrapped a lot of existing capacity. Now that the global economy is improving, there are too few boxes for shippers to find in every regional market.”

The annual benchmark report released yesterday shows the continued impact of the economic slowdown on the U.S. logistics industry.  Released by the Council of Supply Chain Management Professionals (CSCMP) and presented by Penske Logistics, it reveals that total U.S. logistics costs dropped again last year, showing a significant decrease from 2008. 

“While this trend is likely to continue,” warned Wilson, “shippers should not expect to see ocean rates coming down. They are about as low as they can go now for carrier’s to conduct sustainable levels of service.”

The report, authored by Wilson, shows the continued impact of the economic slowdown on the U.S. logistics industry. Overall, indicators show improvements in the fourth quarter with a focus on future direction.

“The economy is beginning to recover, and although time will tell how the logistics sector deals with the recovery, those companies that use the statistics and industry insight contained in this report will be better prepared for the business activity ahead,” said Rick Blasgen, CSCMP President and CEO. 

“This research presents data for company leaders to be able capitalize to on the recovery as it occurs, such as restructuring their distribution networks to maximize efficiency and minimize miles, investing in technologies to facilitate ‘green’ transportation, and improving real-time data flows to increase visibility and enhance productivity.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Clean Cargo Working Group (CCWG) has released a report indicating that in 2014 average CO2 emissions in the global container shipping trades declined 8.4 percent from the year before.

UPS Freight, the less-than-truckload (LTL) subsidiary of UPS, recently announced it has rolled out a new service center facility in Franklin Park, Illinois. This is the company’s fifth Chicago-area service center along with other ones in Aurora, Chicago, Palantine, and South Holland.

Putting the renewed strength in the truckload market into a very positive perspective is a report issued by Avondale Partners analyst Donald Broughton, which was released yesterday. Entitled, “Q2’15 Trucking Capacity; Goldilocks Era Continues,” Broughton explained that in the second quarter only 70 truckload fleets failed, or exited the business. That number may seem high to some, but it is not, especially when you consider that the second quarter of 2014 saw more than five times as many truckload carriers, 375 to be exact, exit the business.

Global demand remains stable as packaging equipment providers of all sizes shift focus

Six straight days without a ship waiting for berth

Article Topics

News · Ocean Freight · Logistics · Shipping · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA