American supply chains are out of sync while adjusting to short-term changes in demands. But logisticians continue to seek long-term solutions to supply chain issues, an authoritative new report predicts.
But the biggest headline from the 2022 State of Logistics (SoL) report unveiled today at the National Press Club in Washington shows that U.S. business logistics costs rose by a whopping 22.4% to $1.85 trillion last year. That represents 8% of 2021’s $23 trillion Gross Domestic Product (GDP).
The 33rd annual SoL report is produced annually for the Council of Supply Chain Management Professionals (CSCMP) by the global consulting firm Kearney and presented by Penske Logistics.
It attempts to deliver a snapshot of the American economy through the lens of the logistics sector and its role in overall supply chains. The report is a rigorous compilation of leading logistics intelligence from around the world and shines a spotlight on industry trends and key insights on ever evolving supply chains across a number of sectors.
 Here are some major findings from the latest SoL report:
Mark Baxa, CSCMP president and CEO, said competing in today’s global marketplace is not just about the high-quality products and supply chains. It’s also about planning, procurement and delivery.
“It’s also about impacting the global community and doing vital work like making and delivering life-saving vaccines,” Baxa added.
Balika Sonthalia, partner at Kearney and lead author of the report, said it was not surprising to see ongoing disruptions related to the pandemic. But the scope and cost of disruptions continue to weigh heavily on the minds of logistics providers—as they do for all companies contributing to the U.S. economy, Sonthalia added.
“What is notable for 2021, however, is that the logistics sector has begun to implement changes which should benefit manufacturers, retailers and consumers alike,” Sonthalia said. “We’re especially heartened by the progress the sector has made in multi-shoring and last-mile delivery, both of which should quicken delivery schedules and, in the long-term, reduce logistics costs for all parties.”
Andy Moses, senior vice president of sales and solutions at Penske Logistics, said his company has seen “an incredible amount of resiliency” among private truck fleets and dedicated contract carriage truck fleets.
“Demand has been up sharply year-over-year and these fleets continue to manage the complexities they face in the trucking supply chain including headwinds caused by shortages of parts, equipment, drivers and most recently rising fuel costs,” Moses said.
The second annual Third-Party Logistics Warehouse Benchmark Report is here.
Thu, June 30, 2022 – 2:00 pm EDT 

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