|
The Council of Supply Chain Management Professionals recently released its annual "State of Logistics" report, noting that 2014 was "the best year for the supply chain industry since the Great Recession." In his latest post, Wall Street Journal blogger Robbie Whelan outlines five key points from the study to consider as logistics professionals continue their forward momentum.
The trucker shortage stands out as a potential roadblock. The American Trucking Associations estimates the driver shortage to be between 35,000 and 40,000 workers, as older drivers exit the business and aren’t replaced by enough younger truckers. The study notes higher wages might help with recruitment, at the price of higher freight costs.
The council said rail traffic increased 4.5 percent in 2014 and is generally back to pre-recession levels, but there is worry that the nation’s aging infrastructure won’t be adequate to handle rising demand. In 2015, freight railroads invested $29 billion in infrastructure and equipment, and the industry is expected to hire 15,000 new employees.
|
BCOs will be waiting to see if the investment pays off in performance.
Whelan says the shortage of warehouse vacancies around ports could worsen, according to the council, which could mean higher costs for shippers to store goods.
The council also said that despite a boom in volume last year, airfreight revenue fell 1.2 percent. Airfreight was the only mode of freight transport that failed to produce increased revenue for carriers.
The report noted that although ocean freight recovered well in 2014, last year’s congestion at West Coast ports is still producing a lingering reaction. East Coast ports saw the biggest percentage gains among all U.S. ports, the council found, and it’s unclear whether those gains are permanent, or if traffic will return to the West Coast now that the labor conflict has been resolved.
For more of the Wall Street Journal blog: blogs.wsj.com
|
