newsworthy
over year, a decline from the 4. 6 percent
compounded annual growth rate (CAGR)
recorded from 2010 to 2014. The gains during
that period were mostly fueled by 5. 5 percent
annualized growth in transport costs, the
report said. However, transport costs in 2015
rose just 1. 3 percent year over year, as declining fuel surcharges triggered by the rapid
drop in oil prices depressed carrier revenue.
Logistics costs as a percentage of GDP, historically one of the report’s most often-quot-ed data points, was just six basis points below
last year’s number, indicating that the system
was operating in only a marginally more
efficient manner than it did the year before,
according to the report. In the early 1980s,
long before the impact of transport deregulation was fully felt, logistics costs accounted
for about 15 percent of GDP. The dramatic
increase in transportation and logistics efficiency during the last 35 years has been an
overlooked factor in the success of the U.S.
economy during much of that period.
Transport revenue by mode diverged considerably in 2015, according to the report.
Less-than-truckload (LTL) and parcel revenues rose 7 and 8 percent, respectively, as
both modes benefited from increased e-commerce volumes. However, truckload revenue
rose just 3 percent, intermodal revenue rose
2 percent, and airfreight and water revenues—which include import, export, and
domestic waterborne traffic—increased 2. 1
percent. Rail carload revenues, hurt by a
sharp decline in coal demand, fell 12 percent,
while pipeline revenues, hampered by lower
crude oil prices, fell 11. 8 percent, according
to the report.
The divergence in modal revenue is a harbinger of long-term change, according to the
report’s authors. A profound change in buying habits has now put American consumers
“at the wheel” when it comes to influencing
U.S. transport costs, rather than traditional
industrial standbys like energy. This change
may be permanent, the authors said.
The “State of Logistics Report” was prepared by A.T. Kearney in partnership with
CSCMP and others. This is Kearney’s first
attempt at the report, which was launched
by the consultant Robert V. Delaney and was
continued by his associate, Rosalyn Wilson,
after Delaney’s death in 2004.
—Mark Solomon
16 DC VELOCITY JULY 2016 www.dcvelocity.com
go figure …
80%
The percentage of 320 U.K. supply chain executives who said
their companies had no contingency plans to respond to
Britain’s departure from the European Union (EU). The poll
was taken prior to the June 23 vote calling for Britain to leave
the EU.
SOURCE: U.K. PUBLICATION LOGISTICS MANAGER
The Council of Supply Chain Management Professionals (CSCMP)
will present its 2016 Distinguished Service Award to Chris Caplice,
executive director of the Massachusetts Institute of Technology’s
(MIT) Center for Transportation and Logistics, at its annual conference in Orlando, Fla., on Sept. 26.
CSCMP’s Distinguished Service Award is bestowed upon an individual for significant achievements in the logistics and supply chain
management professions. Presented annually, the award was instituted in 1965 as a tribute to logistics pioneer John Drury Sheahan.
“Dr. Caplice has dedicated himself to being a leader in supply
chain management; from his involvement in education to his
innovative work in identifying and developing technologies that
have contributed to the improved efficiency and effectiveness of
transportation, logistics, and supply chain processes, he has had a
dramatic impact in shaping the supply chain discipline as we know
it,” said Rick Blasgen, president and CEO of CSCMP.
CSCMP said the award recognizes Caplice’s contributions to
the discipline from an industry and an academic perspective. His
research is well respected in the academic community and beyond,
according to nominator Yossi Sheffi, MIT professor and past recipient of the Distinguished Service Award.
“Dr. Caplice’s research is path-breaking academically,” Sheffi
said. “It has been used by numerous companies to improve their
operations, cut costs, and improve service levels. His work has even
contributed to various governments’ understanding of the chal-
lenges of supply chain management.”
Currently, Caplice is leading a new program at MIT called
“Micromasters,” where learners all over the world are able to take
courses online, complete a comprehensive exam, and then apply to
MIT. If accepted, they are able to attend the university for a semes-
ter and obtain a master’s degree. Due to Caplice’s innovations in
online learning, MIT’s supply chain management program was cho-
sen to lead this initiative. Caplice has already taught three of these
courses, serving 97,000 students from over 175 countries. According
to CSCMP, he is leading the charge in “democratizing” supply chain
knowledge and making it more accessible to a larger population.
Caplice has also held key roles at Logistics.com, Sabre Holdings,
and the Virginia Military Institute.
Caplice to receive CSCMP’s Distinguished
Service Award
