Where are Freight Rates Headed?
There seem to be a lot of thoughts on where rates in transportation are headed. Right now, there are a couple key factors playing a big role in the future what the rates will look like. Tight capacity is giving trucking companies the upper hand in negotiations over longer freight contracts. We may see contract rates rise as much as 10% this year. Some attribute the hike in rates we’ve so far to the implementation of the ELD Mandate after taking effect December 18. This has caused productivity issues and a crunch in capacity. We very well might see a larger issue in April when law enforcement cracks down even more with ELD monitoring. Truckers that don’t have the ELD appropriately in place by April will be placed out of service.
WHY CHOOSE INVOICE FACTORING
Carrier and Freight Brokers choose to factor their invoices primarily because they are unable to currently meet the cash demands as well as grow their business. They may continue to factor even after solving cash flow problems because they value the factoring company’s backroom services.
HOW ARE CASH FLOW ISSUES CREATED?
Start-up Carriers & Brokers
- Some start-up companies are under-capitalized from the start and lack sufficient cash to meet and stay current with their payables right from the beginning.
- Some use up their initial cash reserves for staffing, opening their office, and investing in activities/materials to generate business.
Existing Carriers & Brokers
- Some experience Rapid Growth creating an increase in current A/P and A/R resulting in a decrease in available cash.
- Some do business with Slow Paying Customers that limit the conversion of A/R into spendable cash, adding to the A/R covering A/P issues.
- Some experience Losses from Non-Paying Accounts which uses up cash reserves.
- Some are affected by Economic or Business Downturns creating the loss of business and revenue faster than expenses can be reduced.
WHAT DO THEY WANT FROM A FACTOR?
- A seamless way to obtain quicker cash from their invoices
- A friendly, convenient system of transacting business with their Factor
- Additional services or benefits adding to the value of the relationship
Discover how Invoice Factoring can assist in the growth of your trucking company to take you to the next level. Call 800-727-3377 or visit Freight Factoring to get more information about speeding up your payments.
Brake test… check.
Lights in working order… check.
Confirm the straps are secure… I’m sure it’s fine.
This segment is getting the thoughts, feelings, and feedback on autonomous trucks in the marketplace. Self-driving trucks has really been stirring things up in transportation and this gives the opinions from five different personalities in the trucking industry.
The lineup includes:
George Parker (The George & Wendy Show)
Ken Bebout (owner of KLB Trucking)
LA Rookie (2nd place – World’s Toughest Trucker)
Kenny Long (You Drive U / Trucking with Authority Podcast)
Brandon Martin (Hammerdown Dispatch)
See more here:
This is a fast-moving segment that will focus on 45-second thoughts and opinions from trucking industry experts from all over. We’ll look to cover all the hot topics in the freight world and get opinions from across the board. We look to focus on topics like trucking rates, autonomous trucks on the road, dispatching, HOS, general government regulations, ELD mandate continuation, and many more. Do you have a suggestion for a topic or a loud-mouth, opinionated, somewhat intelligent contributor? Let us know!
Extreme Driving Conditions for Trucks
It’s that time of year. Temperatures are dropping and there are way too many people on road. This can be the rough mix for holiday travels. Conditions on the road become hazardous in the blink of an eye.
According to AAA, more than 107 million Americans will travel at least 50 miles for the holidays. That’s an increase of 3% from 2016. Higher traffic volumes add the possibility of accidents on the road.
Here are a few points truck drivers have recommended to keep in mind while on the road during the winter season.
- Stay parked. Don’t be a hero. If you feel uneasy about getting on the road in snowy weather, stay put. Contact your dispatcher to adjust the schedule.
- Remove snow and ice from your vehicle. You want to make sure you maintain optimal visibility. Cleaning your windows and roof of any leftover snow will ensure you avoid creating additional blind spots.
- Buckle up. The PSAs may be cheesy but they’re real. The seat belt will save your life.
- Don’t push the limits of your equipment. Know your vehicle’s capabilities before hitting the road.
- Pay attention to the tire spray. Observe the water as it comes off the tires of the vehicles in front of you to best assess the current conditions. If the spray seems minimal, it means the roadway is or has started to freeze and you should use additional caution.
- Leave room. Leave more distance between you and the other vehicles on the road when road conditions are less than pleasant. You never know when you’ll need room to escape to one side.
- Look ahead. Monitoring vehicles further down the road will help give you more reaction time on the road.
Take extra time this season to slow down and drive with additional caution. Accidents can often be avoided with a few extra steps. Be safe out there.