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 current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.

Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.

Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

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