Supply Chain Management: Analyst Says Ocean Shippers Will Not See Softer Rates

image
By Patrick Burnson, Executive Editor
June 10, 2010 - SCMR Editorial

Rosalyn Wilson, a transportation consultant for Delcan Corporation, provided SCMR 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

“U.S. Port Update: Investing in the Future” will feature a panel of three industry leaders from the East Coast, Gulf, and West Coast discussing their relative challenges and opportunities.

Zebra gains instant access to complimentary technologies. But first, it needs to integrate a former partner that is 2-1/2 times its size.

The U.S. Army Corps of Engineers issued a final Chief’s Report approving the Jacksonville Harbor Deepening Project, clearing the way for congressional authorization in an upcoming Water Resources Development Act.

Logistics Management Group News Editor Jeff Berman recently caught up with Doug Waggoner, CEO of Echo Global Logistics, a non-asset based freight brokerage company and a provider of technology-enabled transportation and supply chain management services on various topics impacting freight transportation and logistics.

Carloads—at 295,294—were up 7.2 percent annually, and intermodal trailers and containers were up 9.3 at 264,382.

Article Topics

News · Ocean · Management · Transportation · Shipping · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

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