Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
The year was 1990, and Diane Gibson, co-founder of startup Craters & Freighters, was working at her Denver headquarters when a sales representative from American Airlines walked in the office.
Gibson recalls that the male sales rep asked, "Where are the bosses?"—a reference to Gibson's two male co-founders. "I bit my lip, held my tongue, and told him 'They'll be back shortly,'" she says with a laugh.
Fast-forward two decades. Gibson's original partners are long gone, one leaving in 1994 in a dispute over the company's direction and the other bought out by Gibson in 1995 after he refused to agree to expand beyond Denver.
Today, Craters & Freighters, which manages the movements of specialized commodities described by Gibson as "too large, too outsized, and too weird," does $45 million a year in sales, has 60 franchised offices covering 85 percent of the United States, and is looking to expand internationally. Gibson has steered the company solo for 15 years.
If it were any other field, Gibson's story would not be unique. Across many industries, it is commonplace for women to hold leadership positions. But the upper echelon of the supply chain ranks—whether it is transportation, logistics, or warehousing and distribution—has remained the near-exclusive domain of men.
In some ways, little has changed. A survey of "women in transportation and warehousing" released earlier this year by Catalyst, a New York-based organization that promotes women's advancement in business, found no female CEOs at the companies polled. Only 11 percent of the firms had women board members and 12.6 percent had what Catalyst termed female "executive officers." Women represented about 24 percent of the total labor force at the firms Catalyst surveyed.
The status quo is sometimes felt beyond the numbers. "In my career, it's not been uncommon to walk in the room and hear someone say, 'Oh, someone from marketing is here,'" says Kristin Muhlner, CEO of RollStream Inc., a McLean, Va.-based supply chain software developer. Muhlner, whose background is in engineering and not physical distribution, said she sees little pushback today from men at the corporate level, though she acknowledges it may be a different story "down in the weeds" in warehouses and distribution centers.
But in other ways, change has come, or is coming. In January, Judy McReynolds became CEO of trucking giant Arkansas Best Corp., parent of ABF Freight System. No one could recall a woman before her being put in charge of such a large transportation company that was not her own. Tellingly, the announcement hardly created a ripple, and Arkansas Best did little to highlight its significance.
This fall, Barbara Windsor, president of New Market, Md.-based Hahn Transportation, becomes the first chairwoman of the American Trucking Associations in the group's 77-year history. In addition, women today run 11 state trucking associations, the most ever at one time.
In the public sector, Anne Ferro, former president of the Maryland Motor Truck Association, heads the Department of Transportation's Federal Motor Carrier Safety Administration. Deborah Hersman serves as chairman of the National Transportation Safety Board—only the third woman to do so in that agency's 43-year history.
Long time coming
For women who've spent their careers in logistics, progress can't come too soon. Liz Lasater, founder and CEO of full-service provider Red Arrow Logistics, remembers during her 20-year career at big international transportation firms that "my male peers were more competitive with me than they were with other men."
Lasater, who held upper management roles at her employers, recalls being frequently "kept out of the loop" of need-to-know information filtering down from corporate headquarters. "At one company, this went on for two years," she says.
Lasater says the resistance from men came from within her own organizations, and not from vendors or customers. And it was more prevalent in the United States than abroad, she adds. "Throughout Asia and all the way down to India, it was always about business," she says.
The challenge for women can be compounded if the business is family-owned. Rachel Parker, who is in the management program at trucker Covenant Transportation, the company co-founded by her parents in 1986, says she sometimes has to invoke her lineage to build credibility and be taken seriously by customers and vendors.
Parker says her mother, Jacqueline, like so many so-called trucking wives, was actively involved in the business but in back-office functions traditionally reserved for women while the men were out driving rigs or drumming up sales. "My father makes a point of saying that 'My wife and I founded this company,'" she says.
The consensus is that Parker, 26, is being groomed to run Chattanooga, Tenn.-based Covenant when her father, David, eventually retires. She jokes, however, that David Parker, only 52, "will work until the very end."
Old habits die hard
For an industry facing a "brain drain" as the largely male old guard begins retiring, removing barriers to women's advancement could be considered more than a moral imperative. Fortunately for women seeking a foothold, there's been a proliferation of educational programs enabling professionals of both genders to obtain the specialized skills increasingly required in today's marketplace.
"Women have made tremendous strides, but those who have [done so] possess specific credentials, whether it be in engineering, healthcare, or other fields," says Lasater of Red Arrow. Lasater says that as she was coming up through the industry, "you didn't have advanced courses in supply chain management. You didn't have chief logistics officers. Today, women have the ability to get the credentials needed to advance and succeed."
But women's advocates say that change also needs to happen on a less-tangible front, namely in an awareness that women can be effective transport logistics leaders even though their leadership style may have been perceived as too "soft" for the often rough-and-tumble world of transportation and logistics.
"Many women in leadership roles are consensus-builders, and they encourage open, collegial relationships. That management style has traditionally not been viewed as representing 'leadership' in our business," says Ellen Voie, a former executive at Schneider National Inc. and founder of the Women In Trucking Association, a three-year old non-profit group based in Plover, Wis., that advocates for greater representation of women across all segments of trucking.
Voie admits that women "struggle with an image problem" stemming from the faulty perception that the industry feels they should be seen and not heard. "I don't think people realize that the trucking industry actually welcomes women," she says.
Voie chalks up the current resistance to women's advancement as less a form of deliberate discrimination than a reflection of industry's historic unwillingness to change. "Old habits die hard, so we need to call attention to things that companies are doing" to promote opportunities for women, she says.
Of course, there are some female logistics executives who believe that the old and entrenched ways are not necessarily a hindrance. Gibson of Craters & Freighters, for one, makes no apologies for using certain unique characteristics to her competitive advantage.
"Being a short, blonde, skinny woman has helped more than hurt," she says.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."