Leadership in Logistics: Building Ethical, Sustainable Businesses in Challenging Times
This article comes from a recent TIA Livestream
The logistics industry has transformed dramatically over the past two decades. While technology has revolutionized operations, the fundamental principles of leadership (ethics, integrity, and people development) remain more critical than ever. As the freight market navigates its fourth year of challenging conditions, how leaders respond today will determine their companies’ futures when the market inevitably turns.
People Over Technology
The logistics industry rushed to embrace technology, sometimes at the expense of its greatest asset: people. As Daniel Ilg from ILG Logistics observed, “People are our differentiator. Technology is awesome, but it can’t replace that human touch. And as long as that human touch is going to be there, we need to make sure that we’re supporting our people well and doing everything we can to build them up and grow them.”
While companies readily invest millions in new systems, they often neglect the more critical investment: developing their workforce. The reality is stark; every competitor can access similar technology. What truly distinguishes successful brokerages is their people and how well those people are trained, coached, and empowered to make ethical decisions under pressure.
The Old-School Foundation: Doing What You Say
Amid all the technological advancement, some fundamental principles remain timeless. “Sometimes you have to be a little old school,” explained David Abell from AM Transport. “Old school meaning just doing things the right way, doing what you say you’re going to do, following through on it.”
This includes basic ethical standards that should never be compromised: honoring commitments to carriers, even when a cheaper option emerges later. The temptation to tell a carrier “the load got cancelled” when you’ve found a better rate may seem like smart business in the moment, but it’s a short-term gain that damages long-term reputation.
“You can’t trade short-term profitability for long-term reputation,” Abell emphasized. After 36 years in business, reputation remains the most valuable asset—something reflected in hundreds of five-star reviews from carriers, customers, and employees alike.
Making Decisions Without Complete Information
Leaders in logistics rarely have the luxury of complete information when making critical decisions. The key is having a framework to guide those decisions. “When faced with decisions where you don’t have the complete information, what you do have is your complete understanding of your core values,” Ilg explained.
Starting with the end goal in mind helps navigate difficult scenarios. The best leaders maintain a 30,000-foot perspective, even when immersed in daily operations. They’re playing chess, not checkers—thinking several moves ahead about how today’s decisions will impact tomorrow’s carrier relationships and customer trust.
Managing Emotions and Ego
Perhaps the most challenging aspect of leadership is managing the emotions of yourself and those of your team. “The biggest advice I can give folks is don’t get emotional about this stuff,” shared Abell. “We get in these situations where they think they’re right, we think we’re right, and at the end of the day it’s how can you find that common ground?”
Most people in the industry are simply trying to make a living. When problems arise, the mental and emotional approach to finding a solution matters. Taking ownership, staying calm, and finding win-win solutions builds relationships that survive difficult markets.
Ego management extends beyond individual transactions. “The biggest opportunity for improvement is not only managing your ego but helping your team manage theirs as well,” Abell noted. People want to impress their managers and do good work. The question is: what behaviors will you reward?
Ethics: More Than Just a Word on the Wall
Many brokerage offices display platitudes about partnerships and ethical conduct, yet incentivize brokers to maximize profit on every transaction regardless of fairness. This contradiction creates cultural confusion and breeds unethical behavior.
True ethical leadership requires concrete actions and clear expectations. Ilg recalled an employee at a carrier who, unbeknownst to ILG or that carrier’s management, double-brokered a load. Later, the owner of that carrier met with Ilg, and asked a key question: “Do you really trust all of your people that are sitting out there?” His answer was an unhesitating yes, because expectations had been established from day one. “We’re going to act differently than the bad actors in our industry. We’re going to exist in a different space.”
The “grandma test” offers a simple framework, as Abell explained: “If your grandma walked in to the office right now, would she be happy with the type of music that’s playing? And if she’s not, then why are we listening to it?” The same principle applies to business decisions. Could you look your children in the eye and explain what you did?
The Next Generation Needs “Why”
Leading younger employees requires adapting communication styles. Unlike previous generations who responded to “just do it,” today’s workforce needs context. “People that are working in your office that are younger than you, they want to know why,” Mike Riccio from More Than Miles Consulting explained. “It’s not that you have to kiss their butts. It’s a matter of just explaining that.”
This isn’t about running a democracy or explaining every minor decision. It’s about sharing the vision and helping team members understand how their actions connect to larger goals. When people understand the reasoning behind decisions, especially ethical decisions, they’re more likely to internalize and replicate that thinking independently.
Building Networks and Seeking Counsel
No leader has seen everything. “Things are going to come up that you’ve never seen before,” Abell acknowledged. “You need that network. You need to phone a friend.”
Industry associations like the TIA and other peer networks provide invaluable support for navigating unprecedented challenges. Having trusted colleagues to bounce ideas off, even competitors in different markets, adds crucial data points when making difficult decisions. These relationships often form at conferences and through professional development programs, creating communities that support ethical leadership across the industry.
Accountability Starts at the Top
When problems occur, the finger often points everywhere except leadership. But as Abell emphasized, “I’m a big believer in extreme ownership. If something goes wrong, it’s probably my fault at some point because there’s something I didn’t do. I didn’t train this person enough.”
This mindset transforms problems into learning opportunities. Rather than rushing to the next crisis, effective leaders finish resolving the current situation, then circle back to discuss what happened and why. These teaching moments prepare teams to handle similar challenges more effectively next time.
The Hard Truth About Hard Decisions
A critical distinction often gets lost: “You can be a good person, you can run a good company, you can have a great culture and you can still make hard decisions,” Abell noted. “In fact, you have to.”
Making difficult decisions, whether addressing performance issues, ending unprofitable relationships, or taking an ethical stand that costs money short-term, doesn’t conflict with kindness or integrity. Avoiding crucial conversations actually does a disservice to struggling employees, high-performing team members, and the organization as a whole.
For Ilg, the motivation is clear: “There’s a responsibility that I have and it’s not just to myself and my family, but it’s to the 30 families and mortgages that are sitting out there moving freight right now. If I’m not willing to make the difficult decisions, then how can I expect them to work alongside me?”
Preparing for the Market Turn
The freight market will eventually improve, that’s a certainty. What’s uncertain is which companies will be positioned to capitalize on that shift. Brokerages that spent years “beating down carriers, not paying attention, not paying truck order not used fees” will find those carriers unavailable when capacity tightens. Meanwhile, companies that maintained fair, ethical relationships will have reliable partners ready to help them serve customers.
“It’s chess, not checkers,” Abell noted. “We all know that these markets turn. We’re going to need these carriers now more than ever.”
Control What You Can Control
External market forces, economic conditions, and industry trends matter, but leaders can’t control them. What they can control is messaging, behavior, effort, and culture. “The rest really is noise,” as Riccio put it.
This focus on controllables extends to daily operations. Rather than incentivizing maximum profit extraction on every transaction, smart leaders reward fairness, relationship building, and ethical conduct. They recognize that sustainable profitability comes from repeat business, strong reputations, and reliable carrier partnerships, not from squeezing every last dollar from individual transactions.
The Path Forward
Leadership in logistics today requires balancing competing pressures: quarterly results versus long-term sustainability, speed versus thoughtfulness, profitability versus ethics. The leaders who navigate these tensions successfully share common traits:
- They invest in people as much as technology
- They establish and model clear ethical standards
- They make time to coach and explain the “why” behind decisions
- They build networks for counsel and support
- They take ownership when things go wrong
- They’re willing to make hard decisions guided by core values
- They think long-term even when facing short-term pressures
As Riccio summarized the industry’s tendency to overcomplicate things: “It’s a pretty simple business that somehow we’ve managed to over complicate. You pick up a load and you move it from point A to point B. You pick it up on time, deliver it safely and claim free so the customer can put their product on the shelf.”
The execution may be simple, but doing it consistently, ethically, and profitably requires thoughtful leadership. Companies that embrace that responsibility, that invest in developing ethical leaders at every level, will not only survive challenging markets but emerge stronger when conditions improve.
Learn about TIA’s Freight Leadership Lab, and accelerate your career.
