In our continuing series of discussions with top supply chain company executives, Greg Gantt of Old Dominion Freight Line shares about his company's culture and how it strives to help its customers keep promises every day.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Greg Gantt is president and CEO of Old Dominion Freight Line (OD). Gantt joined the company in 1994 as a regional vice president and was subsequently named senior vice president of operations, then executive vice president and chief operating officer. His operational focus has propelled Old Dominion to a multiyear performance of greater than 99 percent on-time delivery and a cargo claims ratio of 0.5 percent. Both are industry-leading benchmarks. Gantt earned a degree in health and physical education from Appalachian State University, where he was a member of the university's intercollegiate wrestling team. He remains a fan of NCAA wrestling as well as Major League Baseball. He recently spoke with DC Velocity Editorial Director David Maloney.
Q: Old Dominion has consistently ranked among the top LTL (less-than-truckload) carriers in the nation. To what do you attribute that success?
A: We have a unique culture at OD. We have the best and most committed team in the industry. Our people are committed to servicing our customers. All employees are bought in to provide exemplary service far above and beyond our competitors. We call it "Service 2.OD." In addition, our management team is tremendous; we are experienced, and all are on the same page, making a strong team. We have a strategy, and we execute on it daily. We believe we are far more disciplined than the carriers we compete with on a daily basis, which leads to our success.
Q: Your company motto is "Helping the World Keep Promises." As president and CEO, what does that mean to you?
A: Helping the World Keep Promises means we will help our customers keep their promises to their customers. Every shipment we handle is an opportunity to impress two customers (our customer and our customer's customer).
Q: Old Dominion was named to Forbes magazine's 2019 Best Employers List. What makes your company a desirable place to work?
A: We were recognized because of our culture, and our employees are the heart behind that. People come to work at OD and have the opportunity to create a life-long career. I am the perfect example of that. I came to OD in 1994 and served in a handful of positions throughout the company before being named CEO this past year. Inside OD, we refer to ourselves as the "OD Family," because we look out for each other, we have a mutual respect for one another, and we have a passion for the business and our mission to provide the best service to our customers. All of this makes OD a place where people want to work every day.
Q: What are some of the ways you attract and maintain talent?
A: One impactful way that OD attracts and retains talent is by word of mouth. We have a great reputation that we have built over our 85-year history. We provide on-the-job training programs to help and encourage our employees to grow and develop their careers, and we have a strong pay and benefits program. We've found that many of our employees previously worked for other carriers and heard about our culture, career offerings, and benefits, so they eagerly applied to work at OD.
Q: Old Dominion is involved in many charitable causes, including youth baseball. Why is that important to your company values?
A: We think it's essential to be a good corporate citizen. We have 235 service centers across the country, and our OD Family lives and works in all of these communities. As a company, we want to make each community a better place than when we first arrived. We love being able to give back and help others; it's part of the OD Family spirit that drives our culture and business. A few of the larger charities we work with are the United Way, American Red Cross, and Salvation Army. Giving back is who we are.
You mentioned youth baseball, and that brings to mind a fun example of our charity work. We're the Official Freight Carrier of Major League Baseball and a few years ago created a baseball-filled trailer to travel around the country, making stops at various MLB stadiums. This year, we removed the baseballs from the trailer and wanted to give them a second life. We donated more than 12,000 baseballs to "Pitch in for Baseball & Softball," an organization that gives boys and girls access to recreation and contributes to positive youth development by providing baseball and softball equipment to children around the world.
Q: You have personally been involved in collegiate wrestling. Are there lessons from the sport that translate to your leadership role at Old Dominion?
A: Yes, wrestling is a lot of hard work as is LTL trucking. In wrestling, you have to work hard every day, and you have to be consistent. There are no shortcuts. There are no quick fixes or gimmicks. Hard work and determination win every time. This directly relates to my philosophy as a leader and the way we operate at OD.
Q: Are there any new initiatives OD is undertaking that you wish to discuss?
A: OD has a strategic plan that is well documented that will help us continue to grow and gain market share. We are the premier LTL carrier that provides a premium service for a fair price. We're continuing to invest in our fuel-efficient fleet, 235 service centers with more openings and renovations coming in 2019, and most importantly, our people, with training and career development to help them succeed and provide better service to our customers. We also just announced a formal partnership with the American Red Cross as a member of its Disaster Responder Program, where we made an annual pledge of $250,000 to help the Red Cross prepare in advance of disasters to help meet the needs of people affected by disasters big and small.
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.”