Commercial Trucking Financing: The Challenges of 2013
The commercial trucking industry forms the circulatory system of much of our national economy, allowing goods to go from one coast to another and everywhere in between. Despite the crucial importance of logistics, the past few years have not been easy for commercial trucking operations. For one thing, because traditional banks classify commercial trucking loans as high risk, these businesses often have a hard time getting credit through traditional avenues. Another challenge faced by trucking companies are the slew of new regulations geared towards improving driver safety. In light of the fact that in 2012 trucking fatalities rose almost 9%, for a third straight year of increased fatalities, something had to give. Still, many trucking firms are anticipating lowered productivity and increased costs as mandated rest periods cut down the number of hours truckers are able to log in a single day as well as the number of consecutive hours they can drive.
Going into the new year, many business owners are wondering what they can do in order avoid being overly strained by the heightened costs of doing business. The problem with increasing rates in order to pass costs on to consumers is the potential to lose clients. Instead, in order to combat mounting costs, business owners in these industries are going to be forced to think strategically about the efficiency of their operations. Things to expect are an increase in the number of companies that broaden delivery windows, consolidate container volume, or even team up with other companies in order to grasshopper hauls. Strategies surrounding the minimization of downtime between load deliveries are also going to play a major part in efficiency initiatives that businesses are going to have to roll out in order to stay competitive.
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