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Women in Logistics 2022: These 10 Leaders Are Reshaping an Industry That Relies on Agility & Flexibility

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Archives, Education, Global Logistics, Global Trade Daily

Women in Logistics 2022: These 10 Leaders Are Reshaping an Industry That Relies on Agility & Flexibility

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For agility and flexibility in today’s complex supply chain environments, you need diverse, collaborative professionals who can make critical decisions and implement new technologies that streamline operations—all the way from development to fulfillment.
One underrepresented group that can help with this challenge is
women. The gender comprises 41% of the supply chain workforce on average in Gartner’s 2021 “Women in Supply Chain Survey.”

“All told, 73% of responding supply chain organizations, the
highest proportion ever, have a diversity, equity and inclusion goal
related to attracting, developing, retaining and advancing women,”
states the survey’s introduction. “The number of women that held
leadership roles also increased in 2021.”

The report broke it down the percentage of women year-overyear (YoY) thusly:

● First-line managers and supervisors: 33% (2% increase YoY)
● Senior managers: 29% (4% increase YoY)
● Directors: 26% (3% increase YoY)
● Vice presidents and senior directors: 23% (2% increase YoY)
● CSCOs, SVPs, EVPs, and CPOs: 15% (2% decrease YoY)

The report includes possible reasons for the increases, including diversity measures introduced by businesses paying off and the public eye and shareholder scrutiny being fixed on corporate actions
and commitments amid unrest of racial justice and inequality.

However, Gartner cautions, “it is important to know that despite
improvements in representation when compared to 2020, there is
one trend that has remained since this survey was launched in 2016:
as the corporate ladder advances, the proportion of women leaders
declines. Women only make up 23% of VP-level positions in the
average supply chain organization, and apart from consumer sector
supply chains, that number continues to decline as we look at specific industry segments.”

Further, Gartner reports that 54% of survey respondents claimed
that retaining midcareer women is an increasing challenge, and 10%
advised that it is a significant challenge. “We find that lack of career
opportunities is the top reason that midcareer women have left the
organization across all supply chain industries, including supply
chain solution providers,” states Gartner.

Given the improving but still challenging state of women in
supply chain leadership, it is critical that Global Trade’s Women
in Logistics for 2022 recognizes just some who are helping reshape
the industry.

Kristy KnichelCEO and owner Knichel Logistics, Pittsburgh, PA

Twenty-four years ago, Kristy Knichel was 19 when she left the pizza joint she was managing to join her father William’s business. In 2007, she became president of Knichel Logistics, and today she owns and runs the Women’s Business Enterprise National Council-certified company that aims to become a $250 million concern in the next three to five years.

“My mission now revolves around being an advocate for other women within transportation while continuing to grow my business in this fast-paced and ever-changing industry,”
she said in the July/August 2020 issue of Pittsburgh Magazine. The
Women in Trucking Association, which bestowed its inaugural Distinguished Woman in Logistics Award to her, has named Knichel Logistics a top womanowned business and top place for women to work multiple times. (The company has also made Global Trade’s annual list of America’s Top 3PLs several times.)

As of April 25, Synergy Freight Solutions merged with Knichel Logistics to become Knichel LogisticsDetroit Branch. All Synergy employees were retained, including owner and CEO Natasha Erickson, who joined the Knichel leadership team as executive vice president of Business Development. “This relationship will provide additional resources and services to Synergy Freight Solutions customers,” reads a company release, “while also providing Knichel Logistics leadership with another female logistics
entrepreneur’s expertise.”

Gretchen Seth: Senior Vice President Logistics Plus of Erie, PA

A key leader at the transportation, warehousing, fulfillment, global logistics, business intelligence, technology and supply chain solutions company, Seth has more than 40 years of industry experience. That she spearheads business development, implements programs for some of the company’s largest clients and provides international logistics expertise to the freight forwarding division are enough to put her on this list.

What sends Seth over the top is her charitable work, which includes helping launch a  fundraising campaign in March for refugees of Ukraine, where Logistics Plus had 50 employees. As of April, nearly $600,000 had been collected, and she even traveled to Poland to help distribute the aid.

During the height of the pandemic, Seth helped create the LP Medical division that leveraged the company’s overseas resources to source, import, warehouse and deliver more than 2 million pieces of personal protection equipment for hospitals, government organizations and companies in dire need.

Robyn McAllister Meyer: Vice President, Parcel Solutions Transportation Insight of Atlanta, GA

Recognized as a 2021 Supply & Demand Chain Executive Women in Supply Chain, Meyer is known for encouraging women within the industry to take charge and make their own path without worrying about negative reactions or stereotypes. Their inspiration can be her nearly 20-year career of deploying innovative strategies in small package logistics.

Certified in International Trade Compliance, Meyer has worked with logistics, supply chain and fulfillment leaders to solve supply chain challenges for e-commerce companies, retailers, distributors and manufacturers. Her expertise in customer experience, client retention, compliance, risk mitigation, B2B platforms, data security, parcel logistics program management, strategic planning and executive alignment has helped shippers achieve significant cost savings, reduce cycle times, and improve
customer satisfaction rates.

Meyer has also focused on identifying and mentoring individuals who demonstrate leadership qualities, many of whom have risen to VP level or above in various organizations. Like Seth, Meyer has leveraged her industry knowledge to assist those fleeing Ukraine.

Lily Shen CEO & President Transfix of New York, NY

As the leader of the freight transportation company that links shippers with carriers, Shen has driven significant company milestones in waste reduction, empty miles driven and workforce diversity at all levels.

She and her team recently released their inaugural Environmental, Social and Corporate Governance report that shows 43% of senior executive roles are held by women as are 40% of its board seats. Prior to joining Transfix, Shen held numerous senior leadership positions at such companies as eBay, Wealthfront and IDEO, and she served as an advisor to leading global platforms including WeChat, Coupang and Mercari.

During her first year, Transfix’s growth quadrupled and the enterprise customer base increased fivefold. With clients that now include Unilever, Staples and Target, Transfix posted record revenues in 2021 and was positioned to become the first female-led digital freight brokerage to go public via specialpurpose acquisition company in Q2 2022.

Renee Krug CEO Transflo of Tampa, FL

Only announced as the new CEO on April 19, Krug came to Transfl —a Pegasus TransTech mobile, telematics, and business process automation provider to the transportation industry—from GlobalTranz, where she had also served as the 3PL’s chief executive.

She also brings Transflo experience from the carrier side, having previously filled leadership roles at Swift Transportation, America’s largest full truckload carrier, as well as the shipping side from her
days at Honeywell. Krug was presented with a 2018 Distinguished Women in Logistics Award from the nonprofit Women in Trucking. Her arrival at Transflo allowed previous CEO Frank Adelman to become chairman of the board, and he could not be happier about
his successor, praising her “deep sector expertise” and “track record of innovation and executing strategic initiatives.”

Karin Stevens Executive Vice President and Chief of Marketing and Product Overhaul of Austin, TX

Hired as the first full-time employee before Overhaul officially launched in 2016, Stevens’ executive leadership during the early days helped propel the software-based, supply-chain visibility and security solution company to hyper-growth mode now. Part of an initial team of only 15 people, Stevens helped secure the company’s first Fortune 50 customer and coordinated the onboarding of 20+ distribution sites.

After the company secured $55 million in funding that allowed for expansion across North America and into Asia, Europe and Latin America, she played a pivotal role in securing key hires across Client Management & Operations, Sales, Marketing and Product Marketing.

Her superpowers include being a good listener, supporting employees through modeling and recognizing and nurturing her team members’ unique strengths in intentional and innovative ways,
which explains why Stevens earned the title Captain Marvel in Overhaul’s Superhero Program that matches staff attributes with those of corresponding characters in the DC or Marvel universes.

Jennifer Coulter-Lissman Vice President TOC Logistics International of Indianapolis, IN

With two decades of experience working in international logistics and supply chain management, Coulter-Lissman has spent her past eight years as vice president helping realize TOC’s mission of providing supply chain solutions that are unique to each client. She
helped open new offices in Hamburg, Germany; Monterrey in the state of Nuevo León, Mexico; and El Paso and Laredo, Texas. and Hamburg.

Under her leadership, employee count has grown by 1000%, more than 150 new positions have been filled and performance reviews were restructured to encourage open, engaging conversation between team leaders and staff. Speaking of staff, TOC’s team is now comprised of around 50% women and about 50% minorities.

Coulter-Lissman firmly believes that if the company does well,
employees should also, which explains her championing profit sharing and quarterly bonuses. She’s also known for promoting from within.

Cinzia Atkinson Business Solutions Manager Railinc of Cary, North Carolina

With nearly a decade of supply chain experience and a reputation
as a mentor and company culture builder, Atkinson works in rail
freight solutions company Railinc’s TransmetriQ business unit, where she speaks daily with customers navigating the challenges of moving stuff across the country.

She gleans the perspectives of port officials, shippers, railroads and 3PLs to develop more effective inventory strategies in the face of supply chain bottlenecks. That also has her staying up to date on the latest technology advances so she may be a resource for clients.

Because each has unique challenges, she customizes solutions to fit specific business needs and objectives, relying on an array of TransmetriQ data and intelligence on various platforms. She then leverages customer feedback to further refine her team’s solutions. Atkinson was nominated for Railinc’s 2021 President’s Award, and she was named a 2022 Supply & Demand Chain Executive Pro to Know.

Jo Shepherd Executive Vice President of Supply Chain AkzoNobel of Chicago, Illinois

Headquartered in The Netherlands with about 10,000 employees in more than 80 countries, the former AkzoNobel Surface Chemistry hired Shepherd 38 years ago for a junior-level position in the United Kingdom.

She went on to posts around the world before eventually
landing in the Windy City, where she helps the global company transform being the “only woman in the room,” she is thankful “the pool is getting a little bigger” and actively encourages women to explore career opportunities in supply chain. But she adds this warning: “If you want to be praised and patted on the back, then don’t go into supply chain.

This job requires a thick skin because people generally only come to you when things are going wrong. They don’t tell you about the 95% that’s going well.”

Melissa Runge Logistics Industry Consultant Services Atlanta, GA

In 2021, Spend Management Experts was acquired by Transportation Insight, and Runge was put in charge of building a new small parcel business with eight new account managers. Along with her team, the vice president of Parcel Implementation and Client Services helped propel customer retention rates to 97%, and TI went on to realize one of its highest revenue years ever.

Runge, who left TI in May, has a diverse background working for
Fortune 500 enterprises such as UPS, Georgia Pacific, Kimberly Clark and AGCO. Named one of the 2020 Supply & Demand Chain  Executive Women in Supply Chain, Runge is a frequent community speaker and industry writer who serves as the board treasurer for
Girl Talk, which inspires middle and high school girls to be confident leaders customer service, planning, scheduling and logistics functions. “I spend quite a lot of my time mentoring people and developing people; that’s one of my passions,” Shepherd says.

Accustomed to In 2021, Spend Management Experts was acquired by Transportation Insight, and Runge was put in charge of building a new small parcel business through peer-to-peer mentoring, and member of CHIEF, the only private membership network focused on
connecting and supporting women executive leaders

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Archives, Global Trade Daily, Software, Technology

Airforwarders Association Calls On Software Providers To Better Communicate The Benefits Of Digitization To Encourage Wider Adoption

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Forwarders are ready to digitalize but need to better understand a demonstrated value proposition, Brandon Fried, Executive Director, Airforwarders Association (AfA) told delegates at the CNS Partnership Conference in Phoenix.

Forwarders are ready to invest in digitization but need to better understand its worth beyond being a shipper or regulatory requirement, Brandon Fried told delegates at the CNS Partnership Conference in Phoenix.

“There has been steady acceptance and adoption in the air cargo sector at large, but within the independent freight forwarder community, digitization is driven by the shipper,” said Fried.

“Many AfA members invested in automation before the pandemic and could work from home, so in many ways the COVID lockdowns were a gigantic proof of concept.

“But for continued and more widespread streamlining of operations through digitization, there needs to be a more clearly articulated value proposition.”

Fried emphasized that for the necessary increased engagement to happen forwarders need to understand what is at stake.

Acknowledging the challenge of reaching out to the diverse US forwarder community of up to 4000, Fried stressed that software providers had to be better at demonstrating the benefits of digital compliance.

“If the benefits of adopting a specific automation solution are not properly communicated, forwarders won’t move on from legacy practices,” said Fried.

“The software providers have to be better at demonstrating the benefits of digitization and until they do I think the industry at large is paying the price.”

Fried was speaking at the CNS Partnership Conference 2022, attended by a record-breaking 750 delegates from across the globe.

About Airforwarders Association

The Airforwarders Association (AfA) represents more than 200 member companies dedicated to moving cargo throughout the supply chain.

The association’s members range from small businesses with fewer than 20 employees to large companies employing more than 1,000 people and business models varying from domestic to worldwide freight forwarding operations.

In short, they are the travel agents for freight shipments, moving cargo in the timeliest and most cost-efficient manner whether it is carried on aircraft, truck, rail or ship. For more information, visit the association’s website at:

 

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Archives, Global Trade Daily, Warehousing

Amazon looks to Sub-let Warehouses as Growth Slows

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The fall-off in e-retail activity has been significant and this seems to have left Amazon with too much warehousing space. Several US-based press sources are reporting that Amazon is looking to sub-let space in its fulfilment center network.

The news agency Bloomberg is stating that Amazon’s “excess capacity includes warehouses in New York, New Jersey, Southern California and Atlanta…the surfeit of space could far exceed 10 million square feet” with one anonymous person telling Bloomberg that it could be “triple that” whilst another said the “final estimate on the square footage to be vacated hasn’t been reached and that the figure remains in flux”.

This is not entirely a surprise. Amazon has been indicating that the market for e-retail had slowed and this was having implications for its physical network. Last month, Amazon’s CEO Andy Jassy commented that “our Consumer business has grown 23% annually over the past two years, with extraordinary growth in 2020 of 39% year-over-year that necessitated doubling the size of our fulfillment network that we’d built over Amazon’s first 25 years—and doing so in just 24 months. Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network.”

Amazon is not the only company to be affected by the fall in demand for e-retail. UPS has registered a fall in e-retail volumes through its network and the e-retail grocery company Ocado saw sales in its retail business fall 5.7% year-on-year in Q1.

The clear implication is that the slowing market for e-retail is creating an overhang of capacity. Whether this will cool the rather heated warehousing market is far from certain. Logistics property developer Prologis continues to report high demand in many markets with supply still inadequate. However, they report that a good deal of this demand is driven by the need to manage congestion and problems of availability in supply chains.

E-retail has driven the growth of a large part of the logistics market both a domestic level and, to a lesser extent, at a global level. Its growth prospects in both advanced markets and others will shape logistics markets in the short-to-medium term.

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Archives, Global Logistics, Global Trade Daily, News, Ocean Ports

Louis Region Poised To Join One Of The World’s Most Comprehensive Port Networks

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New port south of St. Louis will serve special cargo vessels designed to cut river transit time in half  

The St. Louis region will become part of one of the world’s most comprehensive port networks when the development team that includes APM Terminals opens a planned Container-on-Vessel (COV) port south of St. Louis, Missouri, in the Herculaneum area. APM Terminals serves 10,000 customers around the world, moving products through 76 terminals in its global network.

APM Terminals will be working to line up shippers to use the new port and will also be the operator of a planned container terminal and intermodal rail facility at Plaquemines Port, Harbor and Terminal District, located south of New Orleans. These two ports will be critical hubs on a new, all-water, north-south trade lane connecting the Midwest and the St. Louis region to the lower Mississippi River and on to worldwide destinations. The APM Terminal development project was the focus of the May 24th FreightWeekSTL 2022 session.

The session featured a discussion between Brian Harold, Managing Director of APM Terminals’ Mobile, Alabama facility, and Mary Lamie, Executive Vice President of Multi Modal Enterprises at Bi-State Development, which operates the St. Louis Regional Freightway. Harold said APM Terminals’ operations in Mobile on the Gulf Coast is currently a major gateway to the population centers in the Midwest, providing a competitive alternative to congested East and West Coast ports and helping to improve the overall supply chain flow.

Harold said with beneficial cargo owners (BCOs) now seeing the viability of moving freight through the Gulf Coast, the amount of volume coming in is increasing tremendously. Inland operations, like the proposed site in Herculaneum and other sister ports that would also connect with the Gateway Port in Plaquemines, could further alleviate the stress being felt on the East and West coasts and help provide relief to the railroads.

Harold acknowledged that, traditionally, many shippers have been reluctant to rely on river as a mode of moving cargo due to the length of transit time. But new COV service featuring patented vessels that will be significantly faster than traditional barge tows, with upriver speeds of 13 miles per hour, will be a game-changer.

Larger vessels would move containerized cargo between Plaquemines and St. Louis, Memphis and other proposed hub ports, while smaller vessels will be able to move through locks and low-lying bridges on the tributary rivers, providing service from the Herculaneum port to feeder ports along the Mississippi, Missouri and Illinois Rivers, including ports in Kansas City and Jefferson City in Missouri, Joliet and Chicago in Illinois, and Fort Smith in Arkansas.

While the launch of the new COV service is still a couple of years away, Harold is optimistic the success they are seeing in Mobile can be replicated. The tonnage moving through APM’s Mobile terminal is growing 20 to 25 percent each year as shippers see the viability of the Gulf Coast as a gateway from Asia to the U.S. The company has made several investments to support continued growth since opening in 2008. Those include a $50 million expansion that was finished in 2017 that added 150,000 twenty-foot equivalent units (TEUs) of throughput capacity and two additional cranes.

That was immediately followed by a three-year project that added an additional 150,000 TEUs in capacity and extended APM’s linear dock to handle bigger vessels. The company also has plans for a $100 million expansion with its partners within the Alabama State Port Authority to develop 30-plus acres, grow throughput capacity by upwards of 300,000 TEUs and add two additional cranes. Harold noted the importance of having multiple ports within the Gulf of Mexico to support continued growth and larger vessels coming in, underscoring the need for the additional investment in the new port in Plaquemines and the various other hub ports that will be part of the new COV service.

FreightWeekSTL 2022 continues online through May 27 and will feature panel sessions with industry experts and leaders in freight, logistics and transportation. The week-long event is presented by the St. Louis Regional Freightway and Bi-State Development in conjunction with The Waterways Journal. To learn more and register for the remaining sessions or view past sessions for FreightWeekSTL 2022, visit www.freightweekstl.com.

 

About St. Louis Regional Freightway

The St. Louis Regional Freightway is a Bi-State Development enterprise formed to create a regional freight district and comprehensive authority for freight operations and opportunities within eight counties in Illinois and Missouri, which comprise the St. Louis metropolitan area. Public sector and private industry businesses are collaborating with the St. Louis Regional Freightway to establish the bi-state region as one of the premier multimodal freight hubs and distribution centers in the United States through marketing, public advocacy, and freight and infrastructure development. To learn more, visit thefreightway.com.

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Archives, Global Trade Daily, News, Technology

North America Artificial Intelligence (AI) in Retail Market Size to Surpass US $10 Billion By 2027

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According to a recent study from market research firm Graphical Research, the North America Artificial Intelligence in retail market is set to grow from its current market value of more than $1 billion to over $10 billion by 2027.

North America AI in retail industry trends is anchored by a digital revolution that has taken over the retail market with a boom. It has boosted speed, efficiency, and accuracy across all branches of retail, owing in great part to advanced data and predictive analytics technologies that assist organizations in making data-driven business choices.

AI in retail has provided businesses with access to high-level data and information, which can be used to enhance retail operations and create new business prospects. In fact, it is projected that North America AI in retail market size will be $10 billion by 2027.

Amazon Web Services, Amazon.com Inc, BloomReach Inc., IBM Corporation, Google LLC, Intel Corporation, Microsoft Corporation, Lexalytics Inc., Nvidia Corporation, RetailNext Inc., Oracle Corporation, Salesforce.com, Inc. and SAP SE. are among the leading companies using AI in retail supply chain across North America.

Advanced AI technologies are enabling businesses to aggregate and evaluate individual consumer data in order to conduct tailored promotions. This is why retail businesses in the region are modernizing their e-commerce systems with cutting-edge technology. Below mentioned are the recent examples of companies who have embraced AI into their retail business:

  •  J.C. Penney used AI to overhaul its e-commerce platform in September 2021. The firm is utilizing artificial intelligence (AI) technologies to change its e-commerce platform and improve the online customer experience.
  • Jesta I.S. Inc. extended its cutting-edge vision AI-based CRM platform, which provides omnichannel merchants with deep visual insight into consumer engagement, in June 2020. The visual analytics system delivers agile and actionable customer insights across all channels.
  • NielsenIQ announced a new agreement with Loop Insights Inc. in April 2021 to change the retail sector of North America through automated marketing and increased consumer interaction using real-time business analytics.

Machine learning technology assists businesses in improving the consumer experience and optimizing their supply chain strategy. By using ML’s predictive analytics approach, the retailer is provided with insights to define which marketing campaigns and social media channels are effective in relation to the company's products and services.

In order to unveil a greater ability in captivating new customers, as well as retaining them, retailers are creating a mix of machine learning with marketing efforts. It is expected that North America AI industry share from machine learning technology will grow with a 40% CAGR through 2027.

Considering the ease of shopping and hassle-free operation, e-commerce platforms have taken the centerstage during COVID-19 social distancing times. Because of this increased customer traffic on e-commerce shopping platforms, the automated merchandising application accounted for 30% of the regional market share in 2020.

Online merchants typically utilize automated merchandising software to forecast consumer’s purchase behaviors and provide them with additional shopping options. Through repeated encounters, advanced CRM and marketing systems learn a consumer’s habits and preferences to create a thorough shopper profile, which is then used to send proactive and targeted outbound marketing – tailored suggestions, rewards, or content.

Canada AI in retail industry size will account for more than $2 billion in revenue by 2027. The country’s top retail businesses are heavily concentrating on the adoption of AI and ML-based technologies and approaches that provide a smooth and integrated consumer experience. For example, Walmart Canada will invest USD 3.5 billion in digital transformation over the next five years in July 2020. The funds will be used to purchase IoT sensors, AI software, and blockchain- based transportation payments.

Author Bio

Priyanka Ravi Nair is an MBA (Finance) graduate from Pune, India. She started her journey in content writing more than 2 years ago and there has been no looking back ever since. She aims to explore several aspects in the field of content writing and is currently learning the ropes on writing articles pertaining to market research, business trends, and core industry developments.

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Archives, Global Logistics, Global Trade Daily, News, Ocean Ports, Uncategorized

Port of Corpus Christi Sets New Tonnage and Revenue Records in First Four Months of 2022

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The Port of Corpus Christi experienced double-digit volume growth in the first four months of 2022, establishing new records for tonnage and revenues. Through the end of April its customers moved 59.2 million tons of cargo through the Port of Corpus Christi, representing a 10.4 percent increase over the prior record set in 2020.

These new tonnage records were a result of a 56.2 percent increase in liquefied natural gas (LNG) exports (5.4 million tons), a 17.8 percent increase in refined product exports (10.6 million tons), and a nearly 9 percent increase in crude oil shipments (34 million tons) compared to the first four months of 2020. Crude oil exports have grown from 1.39 million barrels per day in the first four months of 2020 to 1.85 million barrels per day during that same period this year.

The Port of Corpus Christi also set a new record for revenues at $57.4 million, a 19 percent increase from the same period in 2021.

The latest tonnage and revenue records come on the heels of the Port of Corpus Christi setting an annual tonnage record in 2021 at 167.3 million tons, a 4.7 percent increase from the prior record in 2020. That new high mark was fueled primarily by an 81.2 percent increase in LNG exports, as well as increases in break bulk cargo, which includes wind energy components and natural gas liquids, as well as refined products such as diesel and motor gasoline.

About Port Corpus Christi

As a leader in U.S. energy export ports and a major economic engine of Texas and the nation, Port Corpus Christi is the largest port in the United States in total revenue tonnage. Strategically located on the western Gulf of Mexico with a 36-mile, soon to be 54-foot (MLLW) deep channel, Port Corpus Christi is a major gateway to international and domestic maritime commerce.

The Port has excellent railroad and highway network connectivity via three North American Class-1 railroads and two major interstate highways. With an outstanding staff overseen by its seven-member commission, Port Corpus Christi is “Moving America’s Energy.” www.portofcc.com

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Archives, Global Logistics, Global Trade Daily, News, Uncategorized

ASCM’s 2022 Salary and Career Report Shows Minimal Impact from the Great Resignation, High Job Satisfaction 

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Global Survey Finds Flexibility, Rising Salaries and Narrowing Pay Gap in Supply Chain Careers

The Association for Supply Chain Management (ASCM), the global pacesetter of organizational transformation, talent development and supply chain innovation, today released the findings of its 2022 Supply Chain Salary and Career Report. The annual survey found supply chains were minimally impacted by the Great Resignation. According to the report, 14% of respondents found a new job, up only 2% from last year. The data also revealed career satisfaction remained exceedingly high despite the continuous strain of supply chain disruptions.

“This past year brought continued uncertainty across all industries and supply chain professionals were once again under tremendous pressure to keep pace with a never-ending stream of disruptions,” said ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE. “Amid all these global challenges, it’s reassuring to see supply chain professionals remaining resilient and committed to their vital work and this dynamic industry.”

Flexibility and Strong Salaries

As many industries struggle with balancing return to work policies, supply chain professionals are thriving in the hybrid world created by the pandemic. According to this year’s report, two-thirds of supply chain professionals work in a hybrid or permanent work-from-home setting, demonstrating the flexibility that many in today’s workforce seek when evaluating career options.

Salaries and compensation continue to rise with survey respondents reporting an average of a 9% pay increase. Overall, total compensation has increased by an average of 12%, with the median package being just under $100,000. From a benefits standpoint, the report showed that paid time off is generous within the industry with nearly half (48%) of supply chain professionals reporting receiving four weeks or more of paid vacation.

 Pay Gap Continues to Narrow

For the second year in a row, the report showed that women under 40 earned more than their male counterparts in supply chain roles. Additionally, the overall gender pay gap among supply chain professionals continues to narrow with the upward growth of women in the industry. This year’s report found women aged 40 to 49 narrowed the pay gap down from 15% in last year’s report to 8% this year. While this shows growth for women within the industry, the report found an overall gap for women and people of color at privately held companies. At publicly traded companies, salaries are more equitable for both women and people of color.

“This year’s data is encouraging as we work to attract, develop and retain more diverse supply chain talent but these numbers also demonstrate there is more work to be done. I hope all organizations can redouble efforts to eliminate pay gaps based on gender and race,” added Eshkenazi.

Additional key findings from ASCM’s 2022 Salary and Career Report include the following:

  • Professional development pays off: Those with at least 1 APICS certification earn 25% more salary than those with no certification at all.
  • Strong Salaries: Respondents reported a median salary of $96,000 (base salary and additional compensation).
  • Quick Job Placements: 81% of new graduates found their job in the supply chain industry in three months or less. For professionals already in the industry, 67% found a new job within three months of beginning their search.

For more information on supply chain careers and education, please visit ascm.org/supply-chain-careers.

 About ASCM

The Association for Supply Chain Management (ASCM) is the global pacesetter of organizational transformation, talent development and supply chain innovation. As the largest association for supply chain, ASCM members and worldwide alliances fuel innovation and inspire accountability for resilient, dynamic and sustainable operations. ASCM is built on a foundation of world-class APICS education, certification and career resources, which encompass award-winning workforce development, relevant content, groundbreaking industry standards and a diverse community of professionals who are driven to create a better world through supply chain. To learn more, visit ascm.org.

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Archives, Global Logistics, Global Trade Daily, News, Ocean Ports, Uncategorized

Shanghai Bounces Back as the Covid Wave Shrinks

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The Port of Shanghai has almost fully reinstated daily operations, although the ongoing backlog will likely continue to disrupt the supply chain and cause congestion well into the year.

As reported by Bloomberg, the daily container throughput at the Port of Shanghai  has rebounded to 95.3 per cent of the normal level according to Ministry of Transport official Li Huaqiang.

Cargo throughput at major Chinese ports between up until 24 May was up 4.2 per cent from the same period in April, whilst sinking by almost 1 per cent compared to 2021, he said.

“Our efforts at facilitating logistics are gradually moving from opening up the main artery to smoothing out the fine details,” Li added.

“In the next step, the ministry will focus on improving logistical efficiencies, protecting people’s livelihoods, and reducing burdens. We will provide more support to maintain economic and social stability.”

CMA CGM has also confirmed in its latest customer advisory that pressure on Shanghai yard resources is easing, while the waiting time for ships in the Waigaoqiao port area has shortened as more port employees resume work.

An analysis from VesselsValue on 27 May further showed that Shanghai’s congestion is expected to remain high for the time of year.

Although average waiting times for containerships remain around 13 hours higher compared to last year’s levels, the waiting times at Shanghai are showing signs of recovery going down to 36 hours from a peak of 69 hours in late April.

According to VesselsValue, data shows a downward trend with levels expected to steadily normalise as the COVID-19 outbreak recedes.

While the lockdown of Shanghai is slowly being lifted, the effects on production and supply chains will likely be felt for months.

With the current trends in the market, carriers are expected to be flooded with an extraordinary amount of containers – with capacity booming on the two Transpacific lanes by a little over 10 per cent in each of the upcoming 12 weeks compared to the respective weeks in 2019.

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Archives, Commentary, Global Logistics, Global Trade Daily, Uncategorized

Why Is Inflation So High Right Now? 6 Reasons & What Comes Next

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Inflation is everywhere

The war in Ukraine will likely pour more gasoline on the already raging inflationary fire, threatening to send the global economy into stagflation. Stagflation is a slowdown of economic activity caused by inflation.

Let’s review what is going on in the US and global economies.

Oil

First, higher commodity prices. Even before the pandemic, the supply of oil and gas was getting constrained by a decline in investment caused by low oil and natural gas prices and petrocarbons falling out of favor with the ESG cult. The pandemic caused a further falloff of investment in the sector. Russia’s invasion of Ukraine forced the world to excommunicate the third largest producer of petrochemicals from modernity.

The oil market has slightly different dynamics from the natural gas market. Oil is a fungible commodity and is easily transported by tankers, and thus it can be (relatively) easily redirected from one customer to another. For instance, if China used to buy oil from Saudi Arabia and now buys oil from Russia, the oil that China stopped buying from Saudi Arabia can now be bought by Germany. That said, Russia produces heavy crude and the Saudis light crude, so refineries need to be reconfigured, and that takes months.

Sanctions on oil will only have an impact on the Russian economy if everyone stops buying Russian oil. If all countries embrace sanctions, then about 8 million barrels of daily oil exports will be removed from the market. That is a lot of oil, considering that world consumes about 88 million barrels a day.

It is unclear if China and India, the largest and third largest importers of oil, will go on buying significant amounts of oil from Russia, as doing so risks damaging their relationships with the West. Neither country wants to be told what to do by the West. They have their own economic interests to consider, but their trade with US and Europe is significantly greater than it is with Russia.

It seems that both countries have been slowly distancing themselves from Russia. For example, the Chinese credit card network UnionPay has quietly cut off its relationship with Russia. Though Russia has an internal credit card network called Mir, since Russia was cut off from the Visa and Mastercard networks and now from UnionPay, Russians have no easy way to spend money when they travel outside of Russia.

This war was a horrible infomercial for Russian weapons, and there is a good chance India may decide to switch to Western weapons, which would bring it closer to the West.

In the short term, the supply of oil from Russia to the world market will likely shrink; it is just hard to tell by how much. The demand for Russian oil has clearly declined, as the (Urals) price is down 30% while global oil prices are making new highs.

Long-term, the oil-supply picture from Russia looks even worse. There was a good reason why Western companies participated in Russian oil projects. A great love for the West was not the motivator that drove Russia to share oil revenues with BP and Exxon. Western companies brought much-needed technical expertise to very challenging Russian oil and natural gas fields. With the West leaving Russia, long-term production of oil and gas is likely to decline, even if China and India continue buying Russian oil and gas.

Gas

Let’s turn to the natural gas market.

Call me Mr. Obvious, but I will say it anyway: natural gas is a gas and oil is a liquid. Shipping gasses is much trickier than shipping liquids. Natural gas can be transported two ways: by pipelines (the cheapest and most efficient way, but they take years to build) and by LNG ships. LNG stands for liquified natural gas – the gas is cooled to -260F and turned into a liquid. Western Europe, especially Germany, is heavily reliant on Russian gas, which today is transported to Europe through pipelines.

Side note: In the future, when you put your livelihood in the hands of well-meaning politicians (especially if you are a resident of California), just remind yourself that German politicians, in their fervor to go green, abandoned nuclear power, which produces zero CO2, switched to intermittent “green” wind and solar (and fell back on dirty coal) and tied their future to a shirtless Russian dictator. I discussed this topic before – you can read about it here.

Some smaller European countries are already abandoning Russian gas. Germany and Italy, the largest consumers of Russian gas, promise that they can delink themselves from Russia’s gas in less than two years. This trend will continue; it just won’t happen overnight (or in two years). Call me a skeptic, but I think it will take a long time for Europe to completely abandon Russian natural gas, as building LNG terminals takes years, and so does increasing natural gas production.

Oil and natural gas prices will likely stay at elevated levels or even go higher over the next few years, and the US production of natural gas and oil will likely have to go up substantially. This will benefit some of the companies in our portfolio, which I’ll discuss in part two of the letter.

Food

The second new source of inflation is food. It’s a significant concern for us. Russia and Ukraine produce about 15% of the world’s wheat supply. They account for about one third of global wheat exports (or about 7% of global wheat consumption). Russia has slapped a ban on wheat exports. Ukraine’s planting season was likely disrupted by the war. The global wheat supply may decline by as much as 7%. This sounds like a large number, but it is not outside the historical volatility caused by droughts and other natural disasters, which have historically driven up wheat prices by a few percent.

This is not what worries us.

We are concerned about the skyrocketing prices of nitrogen and potassium fertilizers since the beginning of the war. Russia and Belarus are the second and third largest exporters of potash used to make potassium fertilizer (Canada is the largest producer). Nitrogen fertilizer is made from natural gas. Natural gas prices are up a lot. High fertilizer prices will lead to significant increase in prices of all calories, from corn to avocados to meat.

Food inflation impacts poor countries and the poor in wealthy countries disproportionately. US consumers spend 8.6% of their disposable income on food (down from 17% in the 1960s). In poor countries this number is significantly higher. For instance, the average Ukrainian spends 38% of disposable income on food. Food prices have been going up, but we are afraid that we ain’t seen nothin’ yet.

Interest Rates

The third new source of inflation is higher interest rates, which make all financed goods more expensive, from washers and dryers to cars to houses. Over the last decade we got used to cheap, abundant credit. If inflation continues to stay at elevated levels, cheap credit will become a relic of the past. Mortgage rates have almost doubled from the lows of 2021 – 30-year mortgages are pushing 5.1% as of this writing. The median home price is $428,000 (up from about $330,000 before the pandemic). The interest increase from 2.7% to 5.1% will cost the average consumer $7,000 a year, or 12% of the total median income of $61,000. About a third of the country doesn’t own a home but rents. Rents increased 11.3% in 2021 and continue to rise in 2022.

Now, if you add the increase in energy prices (gasoline and heating), food inflation, and the higher cost of anything that has to be financed, you’ll see how the consumer is being squeezed from every direction. Government-massaged inflation numbers show a 7–9% increase in prices. We think these numbers are low, despite their having set multi-decade records. A more realistic number is much higher, as is suggested by import and export inflation numbers, which are not adjusted by the government and are running 12–18%.

Supply Chain Problems

Another culprit responsible for higher inflation is supply chain issues. China is going through another partial shutdown of its economy. Putin made us forget about the coronavirus, but the coronavirus did not forget about us. China – the initial source of Covid-19 – has suffered among the lowest per capita numbers of infections and deaths from Covid. The downside of this is that China has very low herd immunity. And though China has locally-made vaccines, they are not very effective, and China refuses to import Western vaccines.

Chairman Xi banked his reputation on a “zero Covid” policy. Today this policy is being sorely tested. China is shutting down cities that are the size of a largish European countries to keep the virus from spreading. Since China makes a lot of the stuff we consume, they’ll make less of it. “Transitory” supply issues from China will persist and add to inflation.

Deglobalization

Finally, the War in Ukraine has accelerated deglobalization. Globalization was a great deflationary tsunami. The pandemic exposed the fragility of our vaunted just-in-time inventory and global supply system. The war in Ukraine reminded the West that the global trade system is built on the assumption that we don’t go to war with our trading partners. The war in Ukraine broke that assumption and accelerated the pace of selective deglobalization, which will lead to higher prices of everything in the long run.

This brings us to stagflation.

Stagflation may be our next stop, but that is not what I am worried about.

If rising costs (inflation) were predictable, then wages would match this increase and the impact on the consumption of goods would be benign. This has been anything but the case lately. Though wages have risen 3–4%, they significantly lag official inflation numbers and are left in the dust by actual inflation. And this is before high interest rates and high fertilizer prices caused by the war in Ukraine hit food production, food prices, and consumer wallets.

As inflation outpaces the growth in wages, consumers find themselves poorer and thus their ability to buy discretionary goods declines. This is how inflation turns into a headwind for economic growth, and it’s called stagflation. The impact of inflation on the economy will depend on the differential between the inflation rate and wage growth. The higher the difference between these two numbers, the more inflation slows down the economy, causing stagflation.

We are not worried about a recession.

Recessions are natural cleansing mechanisms for the economy. Over the course of economic expansions, companies start to drip with fat. Their processes loosen, they hire too many people, they accumulate too much inventory. Recessions are nature’s diet plan for companies that need to shed some fat. Recessions are not fun (especially for those who lose their jobs), but historically they have been short-term interruptions between economic expansions.

To see what the economy and stocks will do during a high-inflation environment, you can look at what they did in the 70s and 80s. Or you can just look at the last 20 years and invert.

Over the last twenty years we had declining interest rates and low inflation, which in turn caused never-ending (with only short-term interruptions) appreciation of housing prices. This put extra money into consumers’ pockets and drove prices of all assets up (especially stocks), which in turn boosted consumer confidence, as people felt wealthier and were encouraged to spend.

Credit flowed like beer at a Saturday night fraternity party. Stock market multiples expanded. Despite government debt tripling, the interest payments on our debt as a percentage of the Federal budget are near an all-time low. Low interest rates and government spending are stimulative. Now, invert all of that and you get anemic long-term economic growth and contracting stock market multiples. The tailwinds of the past turn into the headwinds of the future.

Over the last 20-plus years, every time the economy stumbled, Uncle Fed bailed it out – he lowered interest rates, injected the market with liquidity, and the economy and market were back to the races. The pain from which we were spared did not go away; it was being bottled up in the pain jar. This jar has nearly run out of room and is now leaking. Today, to prevent inflation turning into hyperinflation, the Fed will have to do the opposite of what it is used to doing in the 21st Century – it will be raising rates.

I have been doing this long enough to know that the economy is a complex, self-adjusting mechanism, and thus the grim picture I have painted in this and previous articles may or may not play out. One should never underestimate human ingenuity.

However, our job is to prepare for the worst, and hope for the best. Since hope is not strategic, we are focusing all our energy on the preparing part. Considering that the dotcom 2.0 bubble still has plenty of room to deflate (we rifled through the wreckage and did not find anything we liked), high overall stock market valuations, and grim global economic picture, we are continuing to position our portfolio very conservatively.

We have intentionally positioned the portfolio for a low-growth environment. The majority of our companies don’t march to an economic drummer. In other words, their profitability should not change much if the economy goes through a protracted contraction or low (real) growth. Yes, the market is expensive and the economy is rife with uncertainty; but we don’t own the market, we own carefully selected high-quality, (still-) undervalued companies.

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Hurricane Commerce and AEB Sign Strategic Partnership to Provide “Best-In-Class Cross-Border Ecommerce Solution”

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Hurricane Commerce and AEB (International) have agreed a strategic partnership to provide the complete cross-border eCommerce solution.

The two companies will work together to provide efficient, high speed and accurate data validation for customs clearance.

AEB offers cloud-based global trade software to remove the barriers of trading across customs borders and controls. This includes a full customs platform providing direct filing for export and import declarations and access to an integrated network of customs brokers with automated data exchanges via plug-ins, APIs or file uploads, or manual entry.

Hurricane is the cross-border data specialist providing AI-driven, real-time data solutions covering the areas of data enhancement, duty and tax calculation, prohibited and restricted goods screening and denied parties screening.

About Hurricane Commerce

Hurricane Commerce is the global leader in the provision of complete, accurate and compliant data enabling seamless cross-border eCommerce trade.

Our AI-driven, real-time data solutions cover the critical areas of data enhancement, duty and tax calculation, denied parties screening and prohibited and restricted goods screening.

Hurricane, founded in 2016, has a growing portfolio of customers around the world including Emirates Post, Australia Post, Royal Mail, SEKO, An Post, THG and Evri. www.hurricanecommerce.com

About AEB

AEB software supports the global trade and logistics processes of businesses in the industrial, commercial, and service sectors. More than 5,500 customers are using AEB solutions in 80 countries for shipping, transport and warehouse management, multi-country customs clearance, import and export management, sanctions list screening, and export controls. AEB has more than 550 employees worldwide and has its head office and on-site data centers in Germany – with international offices in the United Kingdom, Singapore, Switzerland, Sweden, the Netherlands, the Czech Republic, and the United States. www.aeb.com