In a report sponsored by Penkse Logistics, the CSCMP said logistics costs fell because of historically low interest rates combined with lower inventory levels that pushed the interest paid on inventories down more than 89 percent from 2008 levels.

Transportation costs were 20.2 percent lower than 2008 levels, said the report, with all modes negatively impacted. Due to abundant capacity and less freight, the logistics industry also experienced significant pressure to reduce costs during the year.

Rick Blasgen, CSCMP president and CEO, commented: “This research presents data for company leaders to be able capitalize to on the recovery as it occurs, such as restructuring their distribution networks to maximize efficiency and minimize miles, investing in technologies to facilitate ‘green’ transportation, and improving real-time data flows to increase visibility and enhance productivity.”

Vince Hartnett, president of Penske Logistics, added: “Logistics providers were among the first to feel the effects of the economic downturn. Today, we are seeing some positive signs of recovery in the supply chain with increasing truck freight volumes and higher truck fleet utilization rates. If this continues, trucking and logistics firms will likely add capacity to take on additional loads and hire drivers to meet increasing demand.”

Since 1988, the CSCMP State of Logistics report has tracked and measured all costs associated with moving goods through the US supply chain. The report benchmarks key metrics in US logistics such as transportation and inventory-carrying costs, freight volumes, and revenues, giving practitioners a big-picture view of the performance of the US supply chain process.