A recent report shows that business logistics costs fell to 7.7 per cent of US gross domestic product (GDP) in 2009 compared with the previous year's 9.3 per cent.

Actual logistics spending declined significantly, as did inventory carrying costs, owing to a 4.6 per cent decrease in stock levels and record low interest rates, said Containerisation International.

It said that according to the findings of the 21st annual 'State of Logistics Report' released by the Council of Supply Chain Management Professionals (CSCMP) and presented by US trucking company Penske Logistics, transportation costs dropped by 20 per cent, led by shipping, while trucking experienced a nine per cent reduction in tonnage carried.

"Logistics providers were among the first to feel the effects of the economic downturn," said Vince Hartnett, president of Penske Logistics. "Today, we are seeing some positive signs of recovery in the supply chain with increasing truck freight volumes and higher truck fleet utilisation rates."

 Source: shipping online