US business logistics costs have escalated to a record $2.3 trillion from last year's $1.85 trillion. This cost now represents 9.1 per cent of the national gross domestic product (GDP), marking the highest percentage ever recorded.
Despite consumers returning to brick-and-mortar stores, e-commerce sales continue to rise. The US e-commerce market saw an 8 per cent growth in 2022, reaching $1.03 trillion, up from $871 billion, and now accounts for 14.5 per cent of the total US retail market, as per the 34th annual State of Logistics Report.
Third-party logistics providers are progressively investing in technology, with 96 per cent migrating to the cloud compared to 86 per cent of shippers. Additionally, 80 per cent of these providers are investing in the Internet of Things (IoT), as opposed to 77 per cent of shippers. Lastly, the report confirms the ongoing reshoring trend. The Kearney Reshoring Index indicates a 26 per cent increase in American imports of Mexican manufactured goods since spring 2020.
"I believe supply chain leaders will find this year's Annual State of Logistics Report, produced by our expert partners at Kearney, to be one of the very best shared with CSCMP's 10,000 members worldwide. After reading the report cover-to-cover, I encourage you to ask, 'what's different, and do I understand the course of action to ensure maximum logistics success on the road ahead?’” said Mark Baxa, CSCMP president and CEO.
"As the logistics sector moves forward from years of supply chain challenges and bottlenecks, our report shows that now is the time to begin thinking seriously and proactively when it comes to building strategic capacity," said Balika Sonthalia, senior partner at Kearney and co-author of the 2023 State of Logistics Report. "Although the market has swung back in shippers' favour—to the detriment of carriers—we cannot emphasise enough the importance for all industry participants to begin planning for geopolitical tensions, cybersecurity threats, climate change, and related natural disasters, slowing e-commerce growth, and global recessionary factors."
ALCHEMPro News Desk (DP)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
