Supply Chain Research

The logistics industry ended the year facing higher container rates and industry consolidation. That has set the stage for analysts to forecast a 6% increase in industry revenues for the fourth quarter vs. the third. That would be the third straight increase, but still be 12% lower than a year earlier. A sustained recovery is expected with 2% growth in 2017 vs. 2016, supported by hopes for capacity discipline in containerized shipping. These forecasts should be taken with a pinch of salt – initial estimates were 7% too high in the third quarter and 3% in the second.