Highlights

The recently released 20th Annual CSCMP State of Logistics Report, “Riding out the Recession”, reveals how the logistics industry has been hit hard by the recession. This comes as no surprise; however, there are bright spots for Georgia as compared to the national statistics.

According to the CSCMP Report, traffic through the nation’s ports contracted by 2.6 % in 2008. The Port of Savannah was one of only three ports to post gains in TEU’s (twenty foot equivalent units), while all of the other Top Ten ports lost traffic. The State of Logistics report shows the Port of Savannah grew its TEU volume by 3.65%, the largest increase of all Top Ten ports.

Looking beyond the recession, Georgia Ports Authority’s (GPA) Container Terminal in Savannah plans to continue to significantly increase efficiencies over the next 10 years. GPA is scheduled to add high-speed container handling equipment in multiple places throughout the terminal as part of long-term developments to further improve terminal efficiencies. To accommodate the larger vessels that will soon be traveling through the Panama Canal, the depth of the Savannah River Navigation Channel will increase from 42 to 48 feet.

The report also showed that national air freight volumes decreased due to both high fuel prices and the economy at large. Nationally, volumes were down 9.4%, while Georgia’s decreased just over 11%. Generally, international freight fared slightly better than domestic cargo. This is encouraging for Georgia’s air cargo industry which transports more international air freight than domestic. Additionally, Hartsfield – Jackson received the prestigious World Air Cargo Award for Airport of the Year in May of 2009; the first U.S. airport to receive this award. International recognition of Hartsfield’s reputation will bolster their attraction of new and returning customers during the economic recovery.

CSCMP’s report also discusses the impact of the stimulus bill on the logistics industry. Under the Recovery Act, $45 billion is designated for transportation, of which about half is expected to directly benefit freight transportation. Georgia is receiving $932 million for highway transportation.

Finally, the report notes that the current climate is an advantageous time to review collaboration and joint venture strategies and to explore adopting new technologies. The Center of Innovation for Logistics is currently working with technology providers and logistics companies alike to identify applications that harness greater efficiencies in the areas of volume, velocity and visibility. The Center is constantly gathering information on the latest industry trends, data and technologies to help Georgia’s logistics companies stay networked and informed.