Tag Archives: transportation

2021 is the year of the freight service embargo

Posted on August 19, 2021 by | 2 comments

It’s not possible to book shipments anymore with some LTL carriers. Their capacity is full, and they don’t care if they get new customers. OnTrak (which delivers my vitamin pills) and Fedex recently said they were refusing new customers. The claims are that they are out of capacity– not enough planes, trucks and drivers— to deliver everything. There are other less visible bottlenecks, also, such as a shortage of trucks for sale due to the semiconductor shortage. There’s been a sort of crisis in drivers for trucks for quite a while, exacerbated by the recent enforcement of rules to prevent people who fail drug tests from getting commercial driver’s licenses. We wonder why employers don’t pay drivers more, and take more care to create working conditions more favorable to drivers.

Still, common carriers have an obligation to carry the freight presented. It will be interesting to see how far this goes, and when regulators will start crawling through these carriers’ records to see if they are unfairly denying carriage.

Eric Kulisch, Air Cargo Editor Thursday, August 19, 2021

Viewpoint: 2021 is the year of the freight service embargo – FreightWaves

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Posted in Logistics, Supply Chains, Trucking

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International transport costs: Why and how to measure them?

Posted on January 21, 2021 by | 2 comments

A nice article from Jan Hoffman of the IAME. Clearly it’s important to measure the costs, and how to do it is a big problem, given the fractionated international transport market. COVID-19 changes make it even more problematic, and then throw in Brexit.

JENNIFER BROWN DOMINIK ENGLERT JAN HOFFMANN|JANUARY 20, 2021

International transport costs: Why and how to measure them?

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Posted in Logistics, Shipping, Supply Chains

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Walmart tightens on-time, in-full requirements

Posted on September 14, 2020 by | 1 comment

A large shipping firm has grabbed a problem by the throat.

Wal-Mart has raised its on-time in-full (OTIF) shipment requirements for all suppliers to 98%. It’s in response to a significant drop-off of on-time deliveries and short shipments, possibly due to COVID-19, but also connected with general carrier and business distress. By punishing suppliers, Wal-Mart sets a standard that others will want to match.

Failure of on-time and in-full deliveries poses a severe problem for managing inventory and matching supply to demand. Carriers won’t be able to get away with it now, and suppliers won’t do as much short-shipping. The standard will ripple over first to other consumer-oriented firms, then to all sorts of firms.

Standards for delivery are a good thing if they become industry-wide. They change the stakes, and give the consumer a clear idea of what to expect for a shipment. They set a basis for deciding what a reasonable charge is. If you can cheat on the delivery date or amount and get away with it, you are likely to when you think it’s to your advantage. And that violates customer trust.

A good example is Amazon’s pioneering of two-day shipping via Amazon Prime. It created a standard for the e-Commerce practice that firms in that market have to be clear about when they set the price for their full offer (including shipment terms)– are they following it or not?

Improving customer trust is a good thing, and sets up sound guidelines for customers to evaluate the value of an offering.

Mark Solomon Friday, September 11, 2020

Link: https://freightwaves.com/news/walmart-tightens-on-time-in-full-requirements

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Posted in Logistics, Production Operations, Strategy, Supply Chains

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