Both sides of the shipper–carrier dynamic are waiting for the tide to turn in a period where no tide table seems reliable. While several market factors continue to favor shippers for now, rate increases may be in store later in the year—though much still depends on factors beyond either side’s immediate control.

To help logistics executives and planners gain a clearer sense of how to think about the current status and future prospects of this market, the State of Logistics Report explores the macroeconomic forces that are shaping it, as well as the primary drivers across major logistical subsectors.

For this 35th edition of the report, we draw upon data and qualitative expertise from trusted sources throughout the industry. These include annual United States business logistics costs (USBLC) figures, as well as findings from the Council of Supply Chain Management Professionals, Penske Logistics, and analysts from leading companies worldwide.

Some of the report’s major findings include:

	Carriers have been plagued by high operating costs, while lackluster demand and the capacity glut have made it hard for them to charge the kinds of rates that would allow them to protect their margins.

	Shippers still hold the advantage overall and have an opportunity to lock in lower rates, diversify and reset their carrier portfolio, and otherwise boost their logistics resilience. Some are going beyond this, seeking to monetize their own logistical capabilities.

	Several shippers and carriers are making moves to rewire their supply networks. They are looking at their logistical functions as a whole and redesigning them with an eye not only toward cost reduction, but also the unleashing of capacity.

	Growing geopolitical instability further complicates investment and policy decisions for business leaders and government officials. This includes outbreak or intensification of military conflict, which has already had profound effects on supply chains. A more subtle form of geopolitical shift may also be seen in the continued fragmentation of global trade. In addition, accelerating climate change has compromised logistics for companies throughout the world.

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