The 2025 edition of the “State of Logistics” report published by the Council of Supply Chain Management Professionals (CSCMP) and sponsored by Penske Logistics outlines how artificial intelligence will play a key role in improving the efficiency and resiliency of both global and domestic freight networks.
[Above photo by Penske Logistics]
The annual report – compiled for CSCMP by consulting firm Kearney – offers a “close-up” of the American economy through the lens of the logistics sector. Notable data and trends detailed in the report include:
- U.S. business logistics costs totaled $2.6 trillion in 2024, which amounts to 8.7 percent of the national Gross Domestic Product or GDP. In 2023, the numbers were $2.3 trillion and 8.7 percent, respectively.
- The logistics industry in 2024 returned to pre-COVID 19 pandemic patterns in some areas. Yet the sector also experienced flat business volumes, excess truck capacity, and rising operational costs.
- E-commerce continues to move along at a brisk pace, with global online retail sales nearing $6.3 trillion, resulting in more efficient last-mile delivery, increasingly agile warehousing, and a stronger demand for air freight.
- Geopolitical tensions – combined with proposed and enacted tariffs as well as shifting trade regulations around the world – increased freight transport times; constrained freight capacity; increased rate volatility in the ocean freight sector, leading to longer home package delivery times and delays; and fostered a greater reliance on third-party logistics providers to deliver end-to-end support.
- Mexico overtook China as the United States’ largest trading partner in 2024. Transactions between the U.S. and Mexico topped at a record $840 billion, a 6 percent year-over-year improvement.
- Technology investment continues to be an essential component of the modern supply chain. Data analytics, artificial intelligence, robotics, and automation are among the key systems supply chain leaders are developing and/or deploying.
“The logistics industry must move beyond short-term fixes and fundamentally rethink resilience – not as a luxury, but as a strategic imperative embedded in networks, technology, and decision-making,” noted Korhan Acar, a Kearney partner and lead author of the report, in a statement.
“In a world defined by disruption, resilience is what ensures continuity, enabling agility, and long-term durability,” he said. “And as AI and automation drive down the cost of building resilient supply chains, the greater risk now lies in standing still.”
As part of a panel discussion held in New York City to unveil the report, Acar stressed that the “majority of the opportunity” in both the domestic and global supply chain sector lies in the “optimization” of transportation networks.
“We fully believe benefit of AI is real – it is going to solve a lot of our problems,” he explained. “It is not necessarily new technology, but the ‘solving capacity’ of AI is. The speed is incredible. The level of data intake and images combined with immense processing power will create dynamic solutions for this sector.”
Noel Hasegaba, chief operating officer for Port of Long Beach, added that while physical infrastructure plays a critical role in accelerating transportation optimization, the real “game changer” is the role technology will play in “amplifying” the human component of global logistics systems.
“We need to recognize that technology in and of itself is not a solution,” he emphasized. “The solution occurs when you integrate it with the operating paradigm – that is what makes humans more productive. As long as we keep our eye on the ball and offer training to our workforce, we’ll see that benefit.”
Using a baseball analogy, Brendan Dillon – senior vice president of global inventory management for Target Corp. – pointed out that, ultimately, AI will allow the logistics workforce to achieve more “double plays” in the market. “AI can make billions of calculations every week – it’s the way we will keep driving down operating costs and keep prices affordable for the consumer,” he said. “AI really is an enhancement for our team members; it helps provide optimism in an uncertain environment.”
Nation
