From Yahoo Finance: 2025-06-11 08:04:00

Spending on logistics in the U.S. increased in both absolute dollar terms and as a percentage of GDP, according to the annual logistics report by the CSCMP. Total U.S. business logistics costs rose by $133 billion to $2.58 trillion, with a 5.4% increase, despite an 8.3% decrease from 2022 to 2023.

Outlays for logistics were about 8.8% of nominal GDP, stabilizing at a higher level post-COVID. Trends like “China plus one, China plus two” are elongating supply chains, leading to increased costs. The report predicts logistics costs will remain elevated due to various disruptions and geopolitical tensions.

Water transportation costs saw the biggest increase, up 93.1% to $161.6 billion. Motor carriers still dominate total expenditures, with full truckload spend declining to $387 billion in 2024. The report also highlighted stable spending in the LTL sector and a shift to private or dedicated fleets.

The outlook for motor carriers in 2025 is clouded by escalating global tensions. Potential impacts from tariffs could increase equipment costs and lead to fleet shortages, affecting carrier margins and new vehicle demand. Maintaining contract rates above $2 per mile may be necessary for healthy performance.

The growth of rail is hindered by inadequate transloading capacity, forcing shippers to turn to trucks. 3PLs must evolve into 4PLs, offering alternative routings and more agile systems to meet changing demands. Last mile capabilities and contingency planning are becoming essential in the logistics industry.

Read more: Logistics GDP share rose in ’24, not likely to drop: CSCMP report