As a kid, she aspired to be a nun or U.S. senator. When that didn’t work out, Gail Rutkowski, outgoing head of NASSTRAC, decided to give transportation a try. She never looked back.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
When Gail Rutkowski first entered the business, the transportation world was a different place. At the time, everything from routes to rates was heavily regulated by the ICC, the FRA, or the states. Business was conducted via letters and phone calls. And transportation departments—and the professionals who staffed them—were viewed as a cost center and, essentially, a necessary evil.
Today, that’s all changed. The regulatory shackles have been loosened, technology has transformed the way we operate, and the logistics and supply chain profession is finally being accorded the respect it deserves.
Against that backdrop, Rutkowski has forged a unique career path that has included transportation management roles on both the shipper and carrier sides of the fence. Among other positions, she has worked in fleet management for Quaker Oats and Belden Wire and Cable, truckload 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. For the past eight years, she has served as executive director of the National Shippers Strategic Transportation Council (NASSTRAC), an education and advocacy group for freight transportation professionals.
Before taking the top job at NASSTRAC, Rutkowski had long been active in the organization, serving a term as president and several years on the group’s executive committee. She was selected member of the year in 2003, 2005, and 2012. She has also served as a member of the Illinois Chamber of Commerce Infrastructure Council and the Chicago Traffic Club, and has been a frequent speaker at industry conferences.
Prior to her retirement this month, she met with her old friend Mitch Mac Donald, DC Velocity’s group editorial director emeritus, to share her thoughts, reflections, and observations as a leading voice for the industry and the profession—one who has experienced logistics from nearly every perspective.
Q: How did you end up working in transportation and logistics?
A: At 17, I started working in the credit department of the gum manufacturer Wrigley Co. The transport department was right across the hall. And with all of the wisdom that 17-year-olds possess, I decided the transport folks were having a lot more fun. So when an opportunity arose to join Quaker Oats in the transportation department, I jumped at the chance, thinking I would have more fun, and I did.
Q: That’s a company that was known for its transportation and logistics prowess back in the day. Two names that come to mind are the logistics legends Cliff Lynch and Sam Flint.
A: Well, I was very lucky. Both were my bosses at Quaker, but not at the same time. Sam was my first boss at Quaker Oats. He hired Cliff, who became my boss later and was a wonderful mentor for me.
Sam also wrote the 1976 Railroad Revitalization and Regulatory Reform Act. I was the secretary and had a front-row seat to the action, which culminated in the measure’s being signed into law. Sam was also way ahead of the curve in calling for the sunsetting of the Interstate Commerce Commission, which oversaw motor freight pricing before and after the industry was deregulated. He was talking about the need to eliminate the ICC way back in the late 1970s. Of course, it took until 1995 for that to happen, but that gives you an idea of how much of a visionary he was.
Q: As you look back over the past four decades or so, how closely does the career you had match up with whatever career you envisioned as a kid?
A: I had a smile on my face as you asked that question. Given that my initial career plans involved becoming a nun or a U.S. senator, my career was not quite what I originally imagined. However, once I found my place in transportation, I became passionate about the industry and people. Recently, in my position at NASSTRAC, I have been marrying my two passions—transportation and politics. So although I didn’t become a U.S. senator, at least I got to meet a few of them.
Q: What are some of the more positive changes you’ve seen in the freight sector during your career?
A: One would be the way we now view the profession. Logistics was once looked upon as a necessary evil, but that’s no longer the case. Today, we not only see what we now call “supply chain” as an integral part of business, but we also see that integration in action, with the development of holistic approaches to supply chain management. It has all given rise to tremendous improvements in how we serve our customers.
Another would be the digital revolution. The advances in technology cannot be ignored. Technology has really played a lead role in paving the way for those improvements.
Q: What about the other side of the coin. Can you point to any industry developments that have had a not-so-positive effect on the freight sector?
A: Well, as I mentioned, technology is such an important component and certainly a positive. But, on the flip side, I also feel that folks have forgotten that you can’t build a team by going out and securing high-value assets like human beings the same way you buy staplers.
Transportation is a relationship business. You need to establish relationships and then work to sustain them. Today’s technology sometimes seems to overlook that important piece. Those who will prosper are the ones who will develop and maintain those trusted relationships with their transportation provider. You can’t do it via text message.
Q: Are there any basic principles of logistics excellence that have remained the same amid all the changes?
A: I think there’s one principle that’s really the same in any vocation. It is passionate dedication. Without that, the work you do will never be fulfilling, and if it is not fulfilling, what’s the point?
Q: What parts of your personal skill set have served you best throughout your career?
A: I think it is really simple for me. It’s just the pure enjoyment I get from being able to meet the people in our industry. If you enjoy your work, that will come through and color everything you do.
Q: You’ve been heavily involved in a number of industry associations. Why has that been important to you?
A: Once I discovered NASSTRAC as a shipper, I found a resource that I couldn’t find anywhere else. I found shippers who were generous with their knowledge as well as open to talking about problems and sharing solutions.
Today, there is so much information coming at us. How much of it is reliable? How much of it is relevant? NASSTRAC provided that reliable information for me.
Then there’s the professional development side of it. You can only do so much sitting in an office—whether that office is in an industrial park or at home. Unless you look outside for new solutions and new ways of doing things, you are never going to get better. NASSTRAC gave me that opportunity.
Q: You have long championed the cause of gender equity with respect to pay—a battle that continues to this day. What can be done to move this forward that hasn’t already been tried?
A: That is a great question. You know, this is one of those issues that is so easily overlooked by folks when you are not directly impacted by it. For a long time, I thought the issue was being resolved and things were getting better. But it’s clear we’re not there yet. While things are changing, they are changing slowly.
I look around at the many amazing women in our industry today, and most of them are not making the same money their male counterparts do. It is just the way it is. I think it’s the way women are brought up and raised, where we don’t know how to fight for ourselves and blow our own horn. You don’t know how to stand up and be counted.
I think younger women are better at that than we more mature women. It is difficult, and of course you need to do that without coming across as arrogant, overbearing, or emotional. When a woman stands up and is forceful, she is accused of being all kinds of things, whereas with a man, they’re like, ‘Wow, he is a real go-getter.’ That hasn’t gone away. As much as we like to pretend otherwise, it’s still there.
Fortunately, I think the younger women coming up behind me were raised with a different mindset—and that goes for younger men too. Today, men are used to having women as bosses. This younger generation is much more accepting of the idea of gender equality in the workplace. That certainly is going to help, but it is going to take time.
Q: As you noted earlier, logistics was once widely viewed as a necessary cost of doing business. Today, we’ve come to understand that supply chain excellence can be a competitive weapon. What has prompted this change in view?
A: In my mind, logistics has really been the last frontier. Early on in my career, the concentration was always on improving manufacturing. Then there was a focus on marketing, and a big deal was made about that. Then, with the arrival of ERP systems like SAP, the focus shifted to technology and its potential to enhance business operations. Logistics was at the bottom of the list until it became obvious that logistics, to your earlier point, should be viewed not as a cost center, but rather, as a profit center. Improvements in logistics translated immediately to the bottom line.
You can have the best operation on the planet within your four walls, but if you lose control of your supply chain, it doesn’t matter how good you might be.
Q: Any final thoughts?
A: Two. I have had the rare privilege of watching this industry evolve from a behind-the-curtain operation to one that’s now front and center of any company’s strategy. I’ve had the opportunity to meet and interact with some amazing people who make up today’s supply chain, and that will always give me great comfort as I step away.
At the same time, my hope is that after this tumultuous year, we learn to treat each other more kindly, work on developing relationships and increasing the level of trust between parties, and enter into partnerships with a true win-win attitude. We can’t solve today’s problems without working together. If we can achieve that, in my mind, this—not technology—would be the next big thing, and it would be our best hope for moving the industry in a forward direction.
NASSTRAC renames “Shipper of the Year Award” in honor of retiring executive director
2021 Shipper of the Year Award winner Gail Rutkowski
She didn’t know it at the time, but when Gail Rutkowski walked onto the stage at the Council of Supply Chain Management Professionals’ (CSCMP) recent Edge Conference in Atlanta, she had a double surprise in store. Not only would she learn she had been chosen to receive NASSTRAC’s prestigious “Shipper of the Year Award,” but she would also find out the award was being renamed the “Gail Rutkowski Transportation Excellence Award” in her honor.
Rutkowski will retire from her post as executive director of NASSTRAC (the National Shippers Strategic Transportation Council) at the end of this year. She has headed up the organization, which is part of CSCMP, since 2014.
Shown here on stage following the surprise announcement are: (L-R) outgoing CSCMP Board Chair Brian Gibson, CSCMP Board Member Todd Bulmash, Gail Rutkowski, and interim CSCMP CEO Mark Baxa.
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.”