Wal-Mart has announced that it will fine companies that don’t ship 95% on time and in full. On time is defined to the exact day, so delays en route will be costly. One transportation manger put it “Now I have to worry about the sex lives of truck drivers.” But the truth is that he has had to worry about this for a while – Target implemented the “on-time to the day” last year. Separately, in-full is a pretty stringent requirement. Consider orders with 100 different products from the same vendor: even if every product has a 99% in-stock rate, the probability of all products being in stock is less than 37%. Seems too harsh to me! Can somebody tell me (and our readers) if there are some tolerances.
The International Energy Agency (IEA) reports that demand for oil is up 1.5 million barrels a day in the second quarter. The IEA is holding firm to its analysis that demand will exceed supply over the longer term despite US fracking. For shippers, this means diesel will trend up in the next decade.