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Volatility drives increase in logistics expenses

Article from AWB

Employers face new increases to the cost of logistics this year as they work to balance their supply chains and inventories, The Wall Street Journal reports. Continuing disruptions and rising inflation are among the new challenges.

These challenges are on top of major cost increases in 2021. Business logistics costs rose 22% last year, according to a new report from the Council of Supply Chain Management Professionals.

Transportation costs rose 22% and inventory-carrying costs rose nearly 26% over 2020, the newspaper reports.

Companies are working to get ahead of supply chain disruptions and delivery delays.

Firms “have a lot of stuff sitting in places that are different than where they want it to be,” said Steve Bobb, chief marketing officer at BNSF Railway Co.

One freight broker told the newspaper there have been supply chain disruptions for 18 months now. And his company was unloading Halloween costumes at California ports last December.

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