DECLINING COSTS FOR DISTRIBUTION BENEFITING THE IMAGE OF LOGISTICS

This article describes how having helped cut industry costs, logistics is now gaining new respect. A consultant notes that comparing 1986 with 1985 figures, transport costs will be seen to be down 6.3%, warehousing costs 10.6% and cost of carrying inventory 3.8%. This means an overall reduction of 20.6% since first year of deregulation. This is good news for shippers, but carriers find profit margins grow thinner. Even in the intermodal area, where there has been spectacular volume growth in the last few years, profit margins have been decidedly unspectacular, and several experts see some troubles ahead for the intermodal business. The growth and maturation of intermodal transportation is discussed. It is noted that steamship companies are also facing some hard choices in the intermodal area. The subject of long-term shipper-carrier partnerships is also discussed.

• Availability:
  • Find a library where document is available. Order URL: https://www.library.northwestern.edu/find-borrow-request/requests-interlibrary-loan/lending-institutions.html
• Authors:
  • ETTORRE, J J
• Publication Date: 1986-10-20

Media Info

• Pagination: p. 21-24
• Serial:
  • Traffic World
  • Volume: 208
  • Issue Number: 3
  • Publisher: Commonwealth Business Media
  • ISSN: 0041-073X
  • Serial URL: http://www.trafficworld.com

Subject/Index Terms

• TRT Terms: Costs; Freight transportation; Industries; Intermodal transportation; Inventory; Logistics; Motor carriers; Physical distribution; Profits; Traffic managers; Warehousing
• Uncontrolled Terms: Shippers
• Old TRIS Terms: Distribution costs
• Subject Areas: Administration and Management; Economics; Finance; Freight Transportation; Highways; Motor Carriers; Planning and Forecasting; Society; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00460069
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 30 1986 12:00AM