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Demand for freight and logistics services in 2014 reached record levels in some sectors. If growth continues as expected, then tighter capacity—and higher rates—are likely to follow.
After a slow start, demand for transportation services is on the rebound, and the year could turn out to be a busy one for shippers, carriers, and service providers.
The ratio of U.S. logistics costs as a percentage of GDP hasn't changed in two years. Costs should continue to hold steady as the economy struggles to gain momentum.
In a slowly reviving economy, U.S. logistics costs as a percentage of gross domestic product increased as rail and motor carriers raised rates. When the economy bounces back, shipment capacity rather than rates may be the big issue facing logistics managers.
After hitting a low point in 2009, U.S. logistics costs as a percentage of GDP rose by 10 percent last year. Unfortunately, that's no cause for optimism: prospects for further business growth are uncertain indeed.
Logistics costs plunged dramatically last year as the economy contracted. Preliminary data for 2010 show that a recovery is under way, but shippers still face a host of challenges.