Access to capital for the majority of the 700,000 carriers that have fewer than 20 trucks is…
Access to capital for the majority of the 700,000 carriers that have fewer than 20 trucks is coming at a hefty price. FreightRover Inc. plans to factor $500 million in freight bills as soon as the carrier sends the data from a phone app. But fast payment costs these small carriers at 9.5-12%. I don’t understand why companies that are crying out for capacity won’t pay faster. Stats (source Hackett):
- 2018 payment days – 56.7
- 2016 payment days – 53.3
Van spot freight costs are up 20% YoY…. Source DAT
One consequence of global warming – the northern shipping route along the Russian northern border, from China to Rotterdam will cut 10 transit days BUT there are issues:
- Big container ships can’t make it
- There are no emergency facilities
- There are no trans-shipment ports for the efficient movement of goods
