ATRI Report: Trucking Operational Costs Dip Slightly
September 05, 2013
Yesterday, the American Transportation Research Institute (ATRI) released the findings of its 2013 update to the operational costs of trucking. According to a news release, the ATRI’s research tracks trucking costs from 2008 through 2012. Fleets participating in the study provide the data. This includes their financial and operational data. The report provides carriers with an important high-level benchmarking tool and government agencies with real-world data for future infrastructure improvement analyses.
<p>According to the ATRI’s press announcement, the average marginal cost per mile in 2012 was $1.63, a slight decrease from the $1.71 found in 2011. But, don't get too exited. After the <em>Great Recession</em> and a sharp decline in fuel prices resulted in decreased industry costs between 2008 and 2009, industry costs steadily rose through 2010 and 2011. The slight decrease in average operating costs in 2012 was most likely due to the weak economic recovery and softening freight conditions experienced in the second half of the year.</p><p>Since its original publication in 2008, the ATRI’s Operational Costs of Trucking reports continue to be one of the most requested ATRI reports among industry stakeholders. In addition to average costs per mile, ATRI’s report documents average costs per hour and includes cost breakouts by industry sector.</p><p>Request a copy of this report from <a href="http://atri-online.org/2013/09/04/an-analysis-of-the-operational-costs-of-trucking-a-2013-update-report-request/">ATRI by clicking here.</a></p><p>ATRI is the trucking industry’s not-for-profit research organization. It is engaged in critical research relating to freight transportation’s essential role in maintaining a safe, secure and efficient transportation system.</p><p><strong>Interested in more trucking and logistics trends?</strong></p><p>Read more about economic conditions, driver shortages, freight volumes, and the challenges they present to trucking operations in the <em>Council of Supply Chain Management Professionals State of Logistics Report </em><a href="http://blog.gopenske.com/logistics/state-of-logistics-report-notes-new-normal-for-industry/" title="2013 State of Logistics Written Summary">here.</a> Watch the <a href="http://blog.gopenske.com/logistics/penske-presents-2013-cscmp-state-of-logistics-report-video/" title="2013 State of Logistics Report Video">video summary.</a></p><p><em>"Move Ahead" Staff</em></p></div>
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CSCMP's State of Logistics Report Finds Intermodal, 3PL Logistics Play Increasing Role in Freight Movement
June 15, 2012
Increased transportation costs and tightened trucking capacity are generating more opportunities for third-party logistics companies and intermodal freight transportation.
<p>Joe Gallick, senior vice president of sales at Penske Logistics, said a challenging economy lends itself well to 3PLs as companies realize the need to leverage assets to be “agile and flexible and to consider different modes.” He added, “modal shift is something we see quite regularly.” </p><p><img class="rm-shortcode" data-rm-shortcode-id="377c5768673e34e9f649d64f90d3072a" data-rm-shortcode-name="rebelmouse-image" id="ff6ce" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNzEwMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzNTU5MTg1NX0.4lxalxLQtra0atob2iLaI5w0Q_abT1KzJzNHC5kf62I/img.jpg?width=980"/>Gallick, along with other industry executives, spoke in a panel discussion at the National Press Club in Washington, D.C., <a href="https://www.gopenske.com/newsroom/2012_6_13_cscmp_logistics.html">following the release</a> of the 23rd Annual State of Logistics Report, introduced by the Council of <a href="http://www.cscmp.org/">Supply Chain Management Professionals</a> (<a href="http://www.cscmp.org/">CSCMP</a>) and presented by <a href="https://www.penskelogistics.com/">Penske Logistics</a> on June 13. </p><p>Rosalyn Wilson, senior business analyst at Delcan and the author of the report, said the third party provider and forwarding sector of the economy was up 9 percent and gaining strength at the end of 2011. </p><p>Wilson said U.S. business logistics costs rose 6.6 percent to $1.28 trillion in 2011. In addition, transportation and inventory carrying costs increased in 2011. Transportation costs increased 6.2 percent due to higher rates, while inventory carrying costs increased 7.6 percent due to higher costs for taxes, obsolescence, depreciation and insurance. </p><p>Capacity within the trucking industry has continued to tighten, due in part to increased regulations, such as Compliance, Safety and Accountability. New hours-of-service regulations that take effect in July 2013 will reduce the number of hours a driver can work, further tightening capacity. What’s more, many companies are having a hard time finding drivers.</p><p>“By the end of 2011 about 18 percent of carriers surveyed by TCP reported 6 to 10 percent unseated trucks,” Wilson said. </p><p>Wilson cautioned attendees that capacity will remain tight. "I urge everyone to begin making contingency plans for the day you cannot get a truck," Wilson said. "The railroads are standing by with a great offer and have the capacity to take up the slack." </p><p><a href="http://www.youtube.com/watch?v=cSzJuXYVl20&feature=relmfu">Interview with Penske Logistics' Joe Gallick </a></p><p><a href="http://www.youtube.com/watch?v=EYAjnvOX2yY">Interview with report author Rosalyn Wilson</a></p><p><a href="http://www.youtube.com/watch?v=DdP2eI7HJZY&feature=channel&list=UL">Interview with moderator Rich Thompson</a></p><p>Trucking companies are already partnering with rail to avoid problems caused by the driver shortage and to avoid the cost of acquiring new equipment or put off replacing older equipment, the report said. </p><p>Freight volumes for trucking and rail increased in 2011. Trucking, which comprises 77 percent of the transportation component, posted a 6.2 percent rise, while the railroad sector saw a 15.3 percent increase. Intermodal volume throughout 2011 increased 5.4 percent to 11.9 million containers and trailers. </p><p>“It is becoming a more preferred method of moving goods,” Wilson said. </p><p>John Lanigan, executive vice president and chief marketing officer at BNSF Railway, said the company’s domestic intermodal growth is up double digits. </p><p>To help facilitate efficient intermodal movements, BNSF is purposely building its newest intermodal facility in Kansas City outside of town so there is room for companies to build distribution centers near it. “These thousand-acre industrial parks are selling out in four to five years of us opening up a new intermodal facility,” he said. </p><p>Technology is also changing how goods are moved. Greater data is available and warehouse and transportation management systems can analyze the information to streamline operations.</p><p><img class="rm-shortcode" data-rm-shortcode-id="138bcee3c2b869f7b2638c5b90371615" data-rm-shortcode-name="rebelmouse-image" id="45503" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNzEwMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwNTI2OTQ0MH0.E9WWG-oIbu7prSW2ADxwvPFu0Quzm2VhsVG37F-E0kY/img.jpg?width=980"/>Gallick (photo on right) said there has been more emphasis on optimizing the movement of goods, including improved layout and design of warehouses. “It is about optimization within the four walls,” he said. </p><p>Route optimization and efficient use of labor within the warehouse is also improving the movement of goods. </p><p>Rick Slather, vice president of customer supply chain for North America consumer products for Kimberly Clark, said information sharing is changing the way many companies operate. </p><p>“The new world is forcing us to collaborate because we have to show higher service levels with lower inventory,” Slather said. </p><p>Here is a sampling of early media coverage of the report: </p><ul class="ee-ul"> <li>Reuters: <a href="http://www.reuters.com/article/2012/06/13/logistics-costs-idUSL1E8HCASX20120613">U.S. business logistics costs rise in slow economic recovery</a></li> <li>Journal of Commerce: <a href="http://www.joc.com/supply-chain-management/losistics-costs-rose-66-percent-last-year">Logistics Costs Rose 6.6 Percent Last Year</a></li> <li>Supply Chain Management Review: <a href="http://www.scmr.com/article/state_of_logistics_report_points_to_sluggish_recovery/">State of Logistics Report Points to Sluggish Recovery</a></li> <li>Commercial Carrier Journal: <a href="http://www.ccjdigital.com/trucking-rates-up-5-15-in-2011-logistics-report-finds/">Trucking rates up 5-15% in 2011, logistics report finds</a> </li> <li>FleetOwner: <a href="http://fleetowner.com/blog/uncertain-state-logistics">An uncertain state of logistics</a><em></em></li></ul><p><em>By “Move Ahead” Staff</em></p></div>
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3PL
4PL
after sales Logistics
air freight
BNSF Railway
cargo
council of supply chain management professionals
CSCMP
Delcan Corporation
disposal logistics
distribution center management
distribution logistics
economic indicators
Economic Outlook
Economy
fourth-party logistics
freight
freight forwarding
Inbound Logistics
inventory
Joe Gallick
John Lanigan
Jones Lang LaSalle
Kimberly Clark
lead logistics
logistics
logistics reports
logistics trends
manufacturing
Mast Global Logistics
material handling
national press club
ocean freight
outbound logistics
packaging
Penske Logistics
ports
procurement logistics
production logistics
rail
reverse logistics
Richard Thompson
Rick Blasgen
Rick Jackson
Rick Sather
Ronald Marotta
Rosalyn Wilson
shipping
shipping containers
supply chain
supply chain reports
supply chain strategy
supply chain trends
third-party logistics
transportation
trucking
warehousing
wholesale channel
wholesalers
Yusen Logistics
CSCMP State of Logistics Report, Presented by Penske, Unveiled on June 13 in Washington, D.C.
June 11, 2012
With the supply chain serving as an important forecasting tool to gauge the health of the U.S. economy, the 23rd Annual State of Logistics Report®, introduced by the Council of Supply Chain Management Professionals (CSCMP) and presented by Penske Logistics, will make its debut on June 13 at the National Press Club in Washington, D.C.
<p>As report author Rosalyn Wilson, a transportation analyst with <a href="http://www.delcan.com/">Delcan Corporation</a> pointed out, the current business climate is a bit more bullish.</p><p>“The economy was incrementally better in 2011, but the freight industry continued to struggle with sluggish and uneven volumes,” Wilson explained. “Despite the fact that capacity was not yet a real problem, rates were up significantly in 2011.”</p><p>Here are the 2012 State of Logistics Report panelists:</p><ul class="ee-ul"> <li><strong>Joe Gallick</strong>, senior vice president of sales, Penske Logistics</li> <li><strong>John Lanigan</strong>, executive vice president and chief marketing officer, BNSF Railway</li> <li><strong>Rick Jackson</strong>, executive vice president, Mast Global Logistics</li> <li><strong>Ronald Marotta</strong>, vice president, origin cargo management, Yusen Logistics (Americas)</li> <li><strong>Rick Sather, </strong>vice president, customer supply chain North America, Kimberly Clark</li> <li><strong>Richard Thompson (panel moderator),</strong> executive vice president, supply chain and logistics, Jones Lang LaSalle</li></ul><p>This is the third year that Penske has sponsored this report. To read more about each of the panelists, please <a href="http://cscmp.org/memberonly/sol-panel.asp">click here</a>.</p><p>“Part of our mission at CSCMP is to develop and disseminate research that helps our members understand how to do their jobs better,” stated Rick Blasgen, CSCMP president and CEO.</p><p>“Knowing how logistics and supply chain costs affect and are affected by the larger economy is a key part of this understanding,” he said. “We look forward to once again working with Penske’s thought leaders to present this year’s research and translate its findings into real-world terms.”</p><p>The State of Logistics Report® has tracked and measured all costs associated with moving goods through the U.S. supply chain since 1988.</p><p>https://twitter.com/#!/PenskeNews/status/195137303851708417</p><p align="right"><em>By Alen Beljin</em></p> </div>
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3PL
4PL
after sales Logistics
air freight
BNSF Railway
cargo
council of supply chain management professionals
CSCMP
disposal logistics
distribution center management
distribution logistics
economic indicators
Economic Outlook
Economy
fourth-party logistics
freight
freight forwarding
Inbound Logistics
inventory
Jones Lang LaSalle
Kimberly Clark
lead logistics
logistics
logistics reports
logistics trends
Mast Global Logistics
material handling
national press club
ocean freight
outbound logistics
packaging
Penske Logistics
ports
procurement logistics
production logistics
rail
reverse logistics
shipping
shipping containers
supply chain
supply chain reports
supply chain strategy
supply chain trends
third-party logistics
transportation
trucking
warehousing
Yusen Logistics
Is a Double-Dip Recession in the Cards Later this Year?
August 24, 2011
A double-dip recession may be impacting the U.S. economy by year’s end or early 2012 according to at least one nationally renowned economist in the transportation industry.
<p>“I am beginning to be of the opinion that we could be heading towards a double-dip recession,” explained Rosalyn Wilson, a senior business analyst with <a href="http://www.delcan.com/">Delcan Corporation</a>. </p><p>Economists like Wilson (pictured right) who study business <a href="https://www.penskelogistics.com/solutions/transportation-services/">transportation</a> and <a href="https://www.penskelogistics.com/solutions/integrated_logistics.html">supply chain</a> trends can be at the forefront of predicting bull and bear markets – as all companies rely on <a href="https://www.pensketruckleasing.com/">trucks</a> and the <a href="http://www.pensketruckrental.com/">moving</a> of goods and services via a supply chain to reach the end user, e.g., purchasing items at a <a href="https://www.penskelogistics.com/industries/consumer.html">big box retailer</a>, <a href="https://www.penskelogistics.com/industries/automotive/">buying a car</a> or sitting down for a restaurant meal. </p><p>Wilson noted that statistics can be interpreted in vastly different ways, citing July retail sales numbers, up by 0.5 percent. </p><p>“People are taking that as a positive sign,” she said. “If you closely examine what’s going on, retailers are discounting their summer merchandise to clear it out and school sales have been relatively brisk, but are on sale already. </p><p>“There is very lean ordering and lean inventory, and a tremendous amount of discounting,” Wilson pointed out, noting that “if retailers continue to cut their margins back to nothing – how long can you exist with almost nothing for your margin?”</p><p>Wilson noted that the combination of increased sales and discounted goods eating away at a retailer’s margin does not make for a healthy economy. </p><p>Of the myriad government and private sector statistics that she regularly reviews, Wilson has a litmus test: the consumer confidence index. She officially becomes worried if the number dips below 50 percent. </p><p>“It has been sinking every month this summer,” Wilson said – citing a high of 63.7 percent to a current low of 54.9 percent. “That says to me that we’re seeing consumers that are still not willing to spend.”</p><p>She said that inflation overall is low, but volatile pricing of consumer must-have items – e.g., food and fuel – has created an unsettling dynamic for U.S. consumers. </p><p>As Wilson explained to “Move Ahead” last November, consumer spending is 70 percent of the American economy, and she’s expecting a flat consumer holiday shopping season. </p><p>A recovery in these uncertain times cannot truly move forward until consumers shake their spendthrift ways. And that will not begin to happen until evening newscasts regularly lead off with positive economic news. “Nobody feels confident enough to make big investments,” Wilson concluded.</p><p><em>By Alen Beljin</em></p><p><em>Wilson is the author of the Council of Supply Chain Management Professionals (<a href="http://www.cscmp.org/">CSCMP</a>) 22<sup>nd</sup> Annual State of Logistics Report® which is presented by <a href="https://www.penskelogistics.com/">Penske Logistics</a>.</em></p></div>
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Penske Logistics Sponsors CSCMP Global Conference
July 21, 2011
Underscoring its commitment to encouraging industry thought leadershipPenske Logistics is once again sponsoring the Council of Supply Chain Management Professionals Global Conference. This year’s conference takes place October 2 - 5 at the Pennsylvania Convention Center in the City of Brotherly Love – Philadelphia, Pa., U.S.A.
<p>Penske Logistics will also participate in two must-see industry sessions during the upcoming conference:</p><p><span>Session 1: CSCMP’s 22nd Annual State of Logistics Report® Presented by Penske Logistics</span></p><p>October 4: 10 a.m. to 11 a.m. in Room 108 A</p><p>This widely followed industry report and well-attended session drew a capacity crowd last year. Be sure to arrive at this session early. While the <a href="https://www.penskelogistics.com/newsroom/2011_6_15_cscmp.html">State of Logistics report was issued in June</a> at the National Press Club in Washington, D.C., its key transportation figures and facts will be updated for the upcoming Philadelphia conference.</p><p>During this session at the <a href="http://www.cscmp.org/">CSCMP</a> Global Conference you’ll find out how key trends across modes including trucking, rail, ocean and air will impact the rest of 2011 and into 2012. You’ll also hear how the industry is being affected and how key companies are responding to these trends. This year’s panelists include:</p><ul class="ee-ul"> <li>Adrian Gonzalez <em>(panel moderator)</em> president, Adelante SCM Corporation</li> <li>Joseph K. Gallick, senior vice president - sales, Penske Logistics</li> <li>John P. Lanigan, executive vice president and chief marketing officer, BNSF Railway</li> <li>Thomas W. Speh, senior director of MBA programs, Miami University of Ohio</li> <li>Rosalyn Wilson, <em>(report author)</em> senior business analyst, Delcan, Inc.</li></ul><p><span>Session 2: Annual Third-Party Logistics CEO Survey</span></p><p>October 4: 1 p.m. - 2:30 p.m. in<strong> </strong>Room 109B<strong></strong></p><p>This session is based on a survey of the leaders of the 40 largest 3PLs operating in North America, Europe, and Asia. The survey and its results are <a href="https://www.penskelogistics.com/newsroom/2010_9_27_ceo.html">researched and analyzed</a> by Dr. Robert Lieb, professor of supply chain management at Northeastern University, and the findings are co-presented by Penske’s Gallick.</p><p>Penske Logistics has been sponsoring this widely cited survey research for several years. The session will identify the industry’s most important dynamics, opportunities and concerns, including the industry’s ongoing commitment to environmental sustainability, its growing use of social media, impact of rising fuel costs, mergers and acquisition trends, and other projections of industry growth rates by region. </p><p><em>By Randy Ryerson</em></p></div>
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