CHICAGO — Global management consulting firm Kearney has released its 36th annual State of Logistics Report, providing a comprehensive look at the evolving logistics landscape. The 2025 edition highlights a sector that, while showing signs of stabilization after years of disruption, remains under pressure from persistent inflation, uneven demand, geopolitical instability, and accelerating climate risks.
Kearney's report outlines the macroeconomic forces and emerging trends reshaping logistics worldwide based on a robust mix of data, including U.S. Business Logistics Costs (USBLC), input from industry leaders, and proprietary insights.
Key takeaways:
- Return to Pre-Pandemic Patterns: After years of volatility, supply and demand in logistics are beginning to re-align, with some markets approaching pre-COVID operational norms.
- Sustainability Takes Center Stage: What was once a peripheral concern is now a core priority. Companies are investing in alternative fuels, carbon offset programs, and electric vehicle fleets, but with a growing emphasis on ROI and pragmatic implementation, especially amid diverging U.S. and EU regulatory frameworks.
- E-commerce Drives Innovation: Continued e-commerce growth is driving innovation in air freight and parcel delivery, prompting intense competition among carriers to meet evolving consumer expectations.
- Digital Transformation Accelerates: Shippers and carriers are adopting advanced technologies, such as IoT, AI, blockchain, and predictive analytics, to optimize operations, enhance resilience, and deliver sustainable value.
- Strategic Rewiring Slows, But M&A Surges: Many have eased their urgency to reconfigure global supply networks, with their focus shifting to long-term strategic priorities. However, mergers and acquisitions—particularly those backed by private equity—remain a hotbed for rapid logistics transformation.
- Tariff Tensions Loom Large: A new wave of global trade tensions and tariffs presents an unpredictable wildcard, threatening to suppress demand and inflate freight costs across key markets.
The full report offers a detailed look at logistics subsectors and the strategic imperatives facing industry leaders. It is available for download through Kearney’s official site.
