Present for the revolution: interview with Gail Rutkowski
Transportation and logistics management has changed markedly in the past three decades. Gail Rutkowski has watched, learned, and played a role in much of what has happened.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Gail Rutkowski got her start in transportation and logistics just on the cusp of major shifts in the way carriers and shippers worked together, a shift largely brought on by deregulation in the 1980s. Today, 30 years later, she serves as executive director of the National Shippers Strategic Transportation Council (NASSTRAC), one of the organizations that worked long and hard to effect legislative and regulatory change.
Rutkowski brings a wealth of experience from both the shipper and carrier sides of transportation management to the position, which she accepted earlier this year. She started out at Quaker Oats and went on to roles in management at Belden Wire and Cable, sales for C.H. Robinson, and transportation management with Thomas & Betts and Medline Industries. She started and ran the logistics services division of AIMS Logistics, before leaving it to launch Wabash Worldwide Logistics.
Rutkowski has long been active in NASSTRAC, serving a term as president and several years on the group's executive committee, and was selected member of the year in 2003, 2005, and 2012. A member of the Illinois Chamber of Commerce Infrastructure Council and the Chicago Traffic Club, she is a frequent speaker at industry conferences. Rutkowski recently spoke to DC Velocity Editorial Director Peter Bradley from her office in Chicago.
Q: What brought you to logistics in the first place?
A: I was very lucky. Early in my career, I was working for Sam Flint at Quaker Oats. Sam was a real mover and shaker in the industry—he helped write the Railroad Revitalization and Regulatory Reform Act back in the '70s. I was working as secretary and had a bird's eye view of how shippers can make a difference and how he stepped up and helped the congressmen and senators he was working with. This was the first piece of transportation deregulation legislation. It was exciting to work for him and an exciting time to be in transportation, to be at the forefront of watching this unfold.
Quaker was the second or third company to get authority to be a private carrier, and Sam spearheaded that effort. I progressed in my career at Quaker Oats, ending up as fleet manager. I got to work with the truckers and learned the industry from the bottom up. I got to see both sides of the business. From the fleet level, I learned how to work with drivers, to spec trucks and crawl around trailers, and learn from drivers what they saw on the road. I couldn't have asked for a better introduction to transportation and logistics. It was perfect.
Q: So you had experience in management and right on the docks? A: Boots on the ground and mud up to my knees, sweeping coffee grounds out of trailers.
Q: You mentioned Sam Flint. Were there other mentors who were important to you? A: Yes, I was very fortunate. I couldn't have asked for better mentors. After Sam, I worked for Cliff Lynch [then vice president of logistics at Quaker Oats]. Cliff was the one who really helped me when I worked in the fleet office and gave me so many opportunities to learn about the industry. He was a wonderful mentor and is still a good friend to this day.
Another was Lou Marino, whom I worked for at Belden Wire and Cable. He was such a visionary. We were doing things back in the '80s that showed up as new things in 2000, things like pool distribution and intermodal transportation. We started the intermodal movement at Quaker Oats using our fleet as our drayage company. Belden took it to the next level, where they were actually guaranteeing service to clients via intermodal. If you placed an order as late as Thursday afternoon in Richmond, Ind., it would be at your dock in L.A. on Monday morning using intermodal. They were real visionaries in what logistics could do and how it could be an important part of your overall supply chain strategy.
Q: You were active in NASSTRAC for a long time before taking on your current role. Why such devotion to the organization? A: You know, I think NASSTRAC was the first organization that embraced transportation education. When it came to what I needed to know to do my job, I learned more from NASSTRAC [than from other organizations]. The people there were welcoming and embraced me, and you just learn to love the folks. It really is about the people, and it really is a great association. To be able to pick up the phone and reach out to Target or Famous Footwear or Best Buy and ask a question and get an answer, it has always been beneficial to me.
Q: What brought you to your current role? A: I've always been interested in the organization not only overall but also in how we do what we do. When I got more involved in advocacy, it became apparent that we needed more focus and really needed to change the way we're perceived. Doug [Easley, NASSTRAC president and director of supply chain solutions for Pathmark Transportation] called and asked if I'd be interested in the opportunity. I was flattered but had to stop and think about whether I really wanted to make this huge career shift. I took a lot of time to think it over. I am thrilled to be here. Every day is a challenge. To be able to shape NASSTRAC, which has been growing over the last few years, is just gratifying.
Q: What do you see as the major challenges for the organization? A: The challenge for every association is to acquire and retain members. You have to have enough touch points into your membership that they know you are there for them and know they can rely on you as their source for transportation education and networking and advocacy. Being able to maintain that level of communication with your members is a challenge for anybody. Companies are not spending a lot of discretionary dollars on association activities or conferences. You need to make sure that what you're offering is worthwhile and that they get enough value for their money or you are not going to succeed as an association. That is a constant battle. What do we do that is different and how do we make our conference of value to our members? That's something we talk about all the time and work on all the time.
Q: What kinds of things are you working on? A: Right now, we've issued for the first time ever our 2014 National Policy Agenda, drafted by Ben Gann, our director of legislative affairs, with the help of [General Counsel] John Cutler and [Advocacy Chair] Mike Reagan and the advocacy committee. It lists all the issues NASSTRAC is interested in and NASSTRAC's stance on the issues, and that will be our agenda for the whole year.
Q: Along with advocacy, education has always been a major focus for NASSTRAC. What's going on there? A: Our education program is one of the best things about NASSTRAC. We're very fortunate to have Dr. [John] Langley [professor of supply chain management at Penn State] as our education adviser. This year, Dr. Brian Gibson [professor of supply chain management at Auburn University] has joined John as a second education adviser. We're looking at making some changes to our program. We want to shake things up a little. Although what we've been doing has been successful, you have to keep it fresh and you have to change things up and make sure people stay engaged.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”