Total logistics costs rose by as much as 80% over the past year. Are shippers in for more of the same in the coming months? 

Research by Moody’s Analytics shows that logistics costs spiked over the past year. The reasons are no secret: missile attacks on commercial shipping in the Red Sea, drought in the Panama Canal, conflicts in Ukraine and the Middle East, to name the major ones. They combined to push transportation lead times by nearly 15 days, forcing shippers either to cut back on sales or load up on inventory to make up for delays. So what’s the outlook for the rest of the year, especially the peak shipping season? We get a perspective from John Donigian, supply chain industry practice lead with Moody’s. He notes a recent decline in logistics expense, but that’s no guarantee that the trend will continue. High labor cost and infrastructure constraints will be with us for the foreseeable future. How, then, can supply chains make themselves resilient to future disruption — or, even better, “antifragile”? Hosted by Bob Bowman, Editor-in-Chief of SupplyChainBrain.

Show notes:

An article from Moody’s: “Top Three 2024 Supply Chain Challenges and Opportunities.”