Economic conditions have been uncertain throughout the COVID-19 pandemic. There is no doubt that businesses in every industry are charting new territory. As regions loosen restrictions, others are experiencing new infection clusters that cause those areas to shut back down. However, despite the adverse conditions in the current economy, the trucking industry is pulling ahead from other sectors in productivity, efficiency, and revenue.
New Shifts in the Current Economy
Steadily over the past three years, e-commerce has been on the rise. Once the pandemic started, businesses from Main Street on up to larger corporations fully embraced the online market, whether they were selling directly to customers or through intermediaries. The boom in e-commerce created a large demand for spot trucking, and LTL shipments skyrocketed. This has given fleets and owner-operators alike more leverage when negotiating spot market rates. The disruptions in supply chains were short-lived, and the trucking industry managed to shift to new routes in order to take on emerging consumer purchasing patterns.
Adapting and Evolving
The trucking industry has faced a lot of challenges in this year alone. From proposed legislation to the pandemic, consumer trends, increased demand from specific sectors, and even the current hurricane season, the trucking industry has managed to adapt quickly and evolve to overcome adversity. Large fleets are now making more use of smaller carrier vehicles to handle LTL shipments more efficiently and allow for “last mile” capabilities, which more consumers are demanding because they are not physically going out to stores as much as they were prior to the COVID-19 pandemic. Truckers were among the first to start taking precautions to minimize contact when picking up and dropping off shipments. While we are not fully out of the woods, the trucking industry has shown it can not only adapt, but pull ahead of other industries when the going gets rough.
The One Constant in a Changing Economic Landscape
Throughout all the changes in the economy, regulations, and the pandemic, the one constant that has remained is the need for working capital. Trucking companies and owner-operators alike need to maintain a positive cash flow to continue operations. The one way to boost cash flow and weather economic adversity is with freight factoring. At Single Point Capital, we provide comprehensive factoring services to convert unpaid receivables into cash within a single day. Contact our offices today to improve cash flow and pull ahead in the current economy.