The CSCMP 2022 State of Logistics Report was updated Tuesday, Sept. 20, 2022, at the CSCMP EDGE 2022 conference. The 33rd annual publication was titled “Out of Sync,” and Michael Zimmerman, partner at Kearney, announced it contained, “to sum it all up, a world of hurt.”

The report is produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney, and the update was presented by Zimmerman and Kevin Smith, a CSCMP board member, along with a panel of executives from Ulta Beauty, Delta’s air freight division and Penske Logistics, as well as an economist from IHS Markit.

Along with the baseline statistics already reported in June, the panelists discussed the continuing volatility in freight rates across modes, with the spread between road freight spot and contract rates presenting the biggest gap in memory, after spot rates plummeted in the first six months of 2022. “Yes, rates are still going down, and the question is: What are you going to do about it?” said Zimmerman. “How are you going to capitalize on it and what does that mean?”

Zimmerman cautioned against shippers becoming complacent about their position of power in negotiating freight services, urging recognition of the lessons learned by many when freight capacity was scarce during the COVID-19 pandemic — good shippers get service. “If you want to know how you’re doing as a preferred shipper, go on Google maps and read what the truckers are saying about your facility,” he warned. “The message is: Love your truckers, make their lives better, and at the least listen to what they say about how you could make life easier for them.”

Read more: State of Logistics: Inventory Low, Costs High, But Sector Changes to Speed Recovery 

Noting the 10% year-on-year growth in the parcel and last-mile markets, Zimmerman said it looked like growth in that sector was here for the long term. Regarding the wild ride taken by air freight, which plummeted in the early days of the pandemic, and then became the mode of refuge for retailers scrambling to service a pandemic-fueled boom in e-commerce, he said, “Air freight helped shippers navigate the crisis, but navigate it expensively.”

Zimmerman said ocean carriers, looking at record profits, had set out to reduce the amount of freight bookings they delegate to freight forwarders, because they wanted a bigger piece of the pie. “That means they will have to absorb a lot more of market volatility,” he noted. 

After discussing trends in sustainability (rising, but not yet fully embracing electric vehicles) and mergers and acquisitions (money has been pouring in from private equity), Zimmerman addressed one of the more common buzz terms current in the industry — the “control tower.."

“It’s ultimately a myth, as an all-seeing part of the organization. If you actually have one that works that way, I’d love to see it,” he said. “What it really is, is a cry for visibility.”

“There’s a lot of sobering information here,” said Smith, who is also president and CEO of Sustainable Supply Chain Consulting. “But we have to remember that supply chain practitioners have done an incredible job of keeping the economy moving.”

All in all, the panelists were optimistic about the future, while noting many daunting challenges, not least in finding and retaining labor. "I hope the report next year will be 'Back in Sync,'" Zimmerman said.