2008 was a stange year for about everything, includiing logistics and the supply chain, with a first half that saw soaring fuel and logistics costs and then the bottom dropping out in the fourth quarter.

While the two somewhat balanced out on a entire year basis, the net result was that for the first time in several years, US logistics costs actually grew at a lower rate for the year than the growth in GDP.

Source: State of Logistics Report 2009, Rosalyn Wilson/CSCMP

Perhaps surprisingly, the largest factor in the drop in logistics costs for the year was not transportation expense but inventory carrying costs, as interest rates dropped by nearly 50%.

For our complete review and comment, please go to: State of the Logistics Union 2009.

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