OPPapers.com

Logistics

Indian Institute of Management, Lucknow



Projetc
Report
on
Analysis of US Logistics Environment

Submitted by

Avichal Agarwal PGP21014
Kunal Tayal PGP21127
Manu Airan PGP22025

TABLE OF CONTENTS

US Economy Overview: 3
Industry Overview : 4
Industry Snapshot 5
Infrastructure Snapshot 5
Road 6
Rail 6
Air 6
Water 6
Industry in 2005: 7
Trucking 7
Ocean 8
Rail/Intermodal 8
Air 8
Market Analysis : 8
UPS: 9
CHRW : 11
EGL, Inc 15
FedEX: 18
Ryder : 20
DHL 23
BAX GLOBAL 25
CNF (Conway) 30
CATERPILLAR LOGISTICS LTD. 32
Schneider 33
PENSKE LOGISTICS 36
References: 38

US Economy Overview:

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $42,000. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The rise in GDP in 2004 and 2005 was undergirded by substantial gains in labor productivity. Hurricane Katrina caused extensive damage in the Gulf Coast region in August 2005, but had a small impact on overall GDP growth for the year.

Soaring oil prices in 2005...