Companies Spent a Record $1.5 Trillion on Shipping Costs in 2017
By Erica E. Phillips | June 19, 2018 9:05 a.m. ET
U.S. businesses are spending more on transportation and warehousing as demand and prices for logistics services increase.
Costs for everything–from big-rig haulers and rail transportation to airfreight, parcel carriers and storage–have risen steeply since the middle of last year. And demand doesn’t show any signs of slowing down, according to the Council of Supply Chain Management Professionals’ annual State of Logistics report.
In 2017, total spending on logistics rose to a record of nearly $1.5 trillion, up 6.2% from the year before, and about $250 billion more than companies spent on logistics in 2008. Rising interest rates, the higher price of fuel and impending tariffs on imports are expected to add to business expenses in the coming year, the report’s authors said.
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