The 2025 CSCMP State of Logistics Report (6/24/25)

Ellie Thornton

Hello and welcome back to Milestones Behind the Freight Curtain. I’m Ellie Thornton, and I'll tell you what...I'm ready for Wimbledon! I’m joined by the one and only Steve DeNunzio. Professor, how’s it going?

Steve DeNunzio

Hey Ellie, I’m good, thanks. Guess I'm more of a Tour de France guy. Actually, I have every Tour since 1989 on DVD! Excited to dig into this week’s episode. We’ve got a lot to unpack with the new State of Logistics Report from CSCMP, right?

Ellie Thornton

Absolutely. The 2025 CSCMP State of Logistics Report just dropped, and honestly, the numbers are wild. U.S. logistics costs hit a record $2.6 trillion. That’s 8.8% of the entire U.S. GDP. I mean, that’s massive.

Steve DeNunzio

Yeah, it’s, uh, it’s kind of mind-blowing. I remember the first time I brought the State of Logistics Report into my classroom—this was, oh, maybe a decade ago?—and I put up the total logistics spend on the screen. The students just stared at me. I think one of them actually asked if I’d added an extra zero by mistake. It’s just hard to wrap your head around how much money moves through this industry.

Ellie Thornton

It really is. And what’s interesting is, even with all that spend, business volumes have been pretty flat. The report says we’re seeing a return to some pre-pandemic patterns, but there’s still a lot of uncertainty. Loads of excess truck capacity, rising costs, and yet e-commerce is still booming—global online retail sales are nearly $6.3 trillion now. That’s just wild.

Steve DeNunzio

Yeah, and that e-commerce growth is driving all sorts of changes—last-mile delivery, more agile warehousing, even more demand for air freight. But, you know, it’s not all smooth sailing. The industry’s still dealing with the aftershocks of the pandemic, and now we’ve got this “fog of uncertainty” the report keeps talking about. It’s like, every time you think you’ve got a handle on things, something else shifts.

Ellie Thornton

Exactly. And I think that’s why this year’s report feels so relevant. It’s not just about the numbers—it’s about how the industry’s adapting, or trying to, in the face of all this unpredictability.

Steve DeNunzio

Right, and a lot of that unpredictability is coming from outside the industry too. Geopolitical tensions, tariffs, climate change—these are all making supply chains more volatile. I mean, we’re seeing longer transit times, more capacity constraints, and, uh, just a lot more rate volatility, especially in ocean freight. It’s not just about moving stuff from A to B anymore.

Ellie Thornton

No, it’s not. And the trade landscape is shifting, too. One of the biggest headlines from the report is that Mexico has now overtaken China as the U.S.’s top trading partner. U.S.-Mexico trade hit a record $840 billion last year, up 6%. That’s a huge shift for North American logistics.

Steve DeNunzio

Yeah, and that’s, uh, that’s not just a blip. It’s a sign of how companies are rethinking their supply chains—nearshoring, diversifying, trying to build in more resilience. But it’s not easy. Every time you move a supply base, you’re dealing with new regulations, new infrastructure, new risks.

Ellie Thornton

Totally. I actually visited a logistics hub in Mexico last year—Monterrey, if I remember right. The amount of cross-border traffic was just staggering. Trucks lined up for miles, warehouses buzzing, everyone talking about how much busier things have gotten since the shift away from China. But, you know, it’s not all smooth. There’s still a lot of bottlenecks at the border, and people are worried about what happens if trade policies change again.

Steve DeNunzio

Yeah, and with all these moving parts, it’s no wonder the report talks about “permanent volatility.” It’s like, the only thing you can count on is that things are gonna keep changing. And that’s tough for logistics folks who, let’s be honest, usually like predictability.

Ellie Thornton

Exactly. And it’s not just the big players feeling it. Over a thousand U.S. freight brokers have closed since last year’s report. That’s a lot of disruption for smaller businesses, and it really shows how fragile some parts of the industry are right now.

Steve DeNunzio

Yeah, and, uh, I think it’s a wake-up call. If you’re not building resilience into your network, you’re just one shock away from real trouble.

Ellie Thornton

Which brings us to the tech side of things. The report makes it clear—data analytics, AI, robotics, automation, they’re not just buzzwords anymore. They’re central to how companies are trying to build resilience and efficiency into their supply chains.

Steve DeNunzio

Yeah, and you see it everywhere. Some of the biggest manufacturers and retailers are actually monetizing their logistics capabilities now—turning what used to be a cost center into a profit center. And then you’ve got retailers pouring money into automation, whether it’s warehouse robots or AI-powered transportation management. It’s, uh, it’s a whole new ballgame.

Ellie Thornton

But it’s not all upside, is it? I mean, automation can make things more efficient, but it also comes with risks—like, what happens if your fancy new system goes down, or if you lose that human touch in customer service? And not every business can afford to invest in the latest tech, especially with costs being what they are.

Steve DeNunzio

Yeah, that’s a good point. I think the report’s authors even say resilience isn’t a luxury anymore—it’s a strategic imperative. But how you get there, that’s the tricky part. Do you double down on tech? Do you focus on building relationships with partners? Maybe a bit of both?

Ellie Thornton

I think it’s gotta be both, honestly. The tech is amazing, but you still need people who can adapt, who can problem-solve when things go sideways. And, you know, as AI and automation get cheaper, the risk is actually in standing still—not in moving forward.

Steve DeNunzio

Yeah, and, uh, I guess that’s the big takeaway from this year’s report. The industry’s in a fog, but the folks who are willing to reinvent themselves, to try new things, they’re the ones who’ll come out ahead.

Ellie Thornton

Couldn’t agree more. Well, that’s all we’ve got time for today. Thanks for joining us as we tried to cut through the fog of logistics together. Steve, always a pleasure.

Steve DeNunzio

Thanks, Ellie. Always great chatting. Hope you enjoy Wimbledon! And thanks to everyone listening—don’t forget, we’ll be back next week with more behind-the-scenes stories from the world of logistics. Take care, everyone.

Ellie Thornton

Game, set, match! See you next time!