Kearney – State of Logistics, 2024

The intro to Kearney – State of Logistics, 2024 by the authors discusses the various external factors impacting the logistics industry, including climate change, geopolitical issues, and macroeconomic challenges. The effects of climate change led to decreased Panama Canal crossings, raising shipping costs and complicating logistics worldwide. Demand in 2023 was sluggish but started to strengthen in the final quarter, driven by e-commerce. Excess carrying capacity resulted in low cargo rates, with expectations of improved rates later in the year. Despite high inventory levels, some haulers faced declining profits and operational challenges. Some carriers have cut back operations or declared bankruptcy, while others are adapting to offer new services. Large shippers are looking to monetize their logistical capabilities and enhance resilience. The concept of a "4PL" model for supply chain management is discussed, with technology playing a crucial role in advancing logistics capabilities. Though few companies have fully embraced this level of innovation, many are beginning to explore new ways to optimize their logistics networks.