Thursday, July 28, 2011

A Bumpy Road

A Bumpy Road:

‘State of Logistics’ Report sees unsettled times ahead for supply chains

The state of logistics is volatile, according to the 22nd Annual State of Logistics Report, put out by industry prognosticator Rosalyn Wilson, and presented to the Council of Supply Chain Management Professionals.

“Most measures would call the first quarter a strong one for the logistics industry,” says Wilson. “In the last few months of 2011, however, volumes have been eroding, along with other key economic indicators, and there are signs that the economy is stalling and predictions for a strong 2011 may fall short.” No matter how you slice and dice the data she’s collected, shippers are going to be in for bumpy ride in terms of rates, capacity, and service over the next six to eight months.

“An unstable rate and capacity environment hurt both sides, and it’s not going to get much better for a while,” said the report. With consumers still on the sidelines, the recovery from the Great Recession has proven to be more elusive and prolonged than any other in our history, and the slow growth presented another year of challenges for the logistics industry.

“By the end of 2011 we will see a different looking freight picture. Shippers may be dodging about in a search for capacity during sudden surges in demand, and carriers will continue to look for a sustainable revenue model,” cautions Wilson.

Navigating these rough seas, staying on this bumpy road, requires keeping constant tabs on a constantly changing logistics market.

Kirk Shearer
800-989-0054 x103

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