E-commerce, once thought to be everything from a passing fad to a very niche sector, has become a mainstay of the economy. Beyond that, e-commerce has been extremely beneficial to the trucking industry, and is driving growth in 2021.
Big Shippers Promote Growth for Carriers
Since the start of the COVID-19 pandemic, Amazon has taken the lead in e-commerce, expanding its services to include last-mile grocery delivery. However, while Amazon is big on the retail side, they are fully aware that the freight industry knows logistics and delivery. To that end, Amazon, as well as other large e-commerce companies, have started “incubator” programs in partnership with trucking companies of every size. These partnerships are designed to increase shipping capacity for e-commerce while still providing the efficiency and last-mile delivery customers have come to expect. The net result is a tremendous opportunity for growth that is driving an economic upswing that starts with the trucking industry.
Trucking companies learned from missteps in 2019. The rush ahead of tariffs in 2018 boosted revenue for carriers, and many were looking to expand rapidly in 2019. When the threat of tariffs ended up being empty, the bubble burst, and many carriers realized they had overextended their plans for growth. In dire cases, the lack of positive cash flow caused a few carriers to file for bankruptcy, but it also created openings for forward-thinking trucking companies that were positioned to tap into the growing e-commerce market. Everything swung in their favor once the pandemit hit, and both businesses and customers were ordering everything online whenever the options presented itself.
The pandemic changed everything for expansion. With tempered expectations, the trucking industry found itself dealing less with brick and mortar customers, and more with e-commerce businesses and the healthcare industry. The need for capacity moving forward resulted in a net increase in Class 8 truck orders of over 42,000 as of January of this year. That an increase of over 145% from January of 2020. Keep in mind that demands for last-mile delivery had had trucking companies expanding their fleets with vans and smaller vehicles to make faster shipments with lowered capacity. E-commerce trends have had the trucking industry as a whole rethinking logistics, routes, and more to accommodate a new sector that is here to stay.
Enabling Growth for Your Fleet
In order for trucking companies to tap into the e-commerce sector and achieve much-needed growth, they need to eliminate cash flow obstacles. To remove the delays in revenue caused by staggered payment schedules of 30 days or more, trucking companies use freight bill factoring from Single Point Capital. Our factoring services turn unpaid receivables into cash and make funds available in a single day. We also offer free credit checks on clients, account management tools, personalized account managers, and a host of other benefits to trucking companies of every size. Freight bill factoring can supercharge your cash flow so you are not relying on short-term loans to smooth over uneven revenue cycles. Contact Single Point Capital today to get started, and gain an edge in the age of e-commerce.