Commercial Trucking Financing Plans Damaged By Winter Extremes
Commercial trucking financing plans have been put out of whack by snows. This winter, small business owners in the logistics industry have felt the same negative effects as other small business owners due to the cold weather. The difference between logistics and other business models, however, is that small businesses in areas that are not as strongly effected by the snows have still felt the impact in their revenues, making commercial trucking businesses into some of the more widely effected business models.
Trucking financing can be dependent on driver pay, and lost hours still need to come from somewhere. One point mentioned in an article from WRCBTV Chattanooga is the fact that, as drivers are caught in snow storms and are unable to make deliveries, they are still drawing billable driving hours that can’t be rolled over onto customers. This can mean that a period of snow related delays can create serious consequences for small business owners who are still required to make payroll.
The limitations of an equipment based business model can push other jobs back. Another reason why commercial truckers are feeling profound effects from the snows is because trucks that are delayed from completing one delivery that must then be completed in the time reserved for others, throwing entire shipping schedules into disarray. As a result, cumulative delays can jeopardize the continued operations of a business if enough key clients become dissatisfied.
The nature of commercial trucking means that businesses can be effected by snows even if there are no snows in their area. Shipping to major centers of industry can be disrupted if part of the route must pass through areas affected by Winter storms, and trucks can become stranded if they make one half of a journey but are unable to make their return trip due to inclement weather. All of this is going to have an impact on the financing plans of commercial truckers in the US. Having faced new regulations, government shutdowns, the ACA and now the polar vortex, American truckers are proving their resilience. Hopefully thawing climates will result in thawed out business accounts as well.
Photo Credit to Oregon Department of Transportation on Flickr