And the impact on the freight industry won’t go unnoticed. Fuel prices are quickly climbing past $3.17 a gallon, and they are expected to keep rising with the slow return of the economy after a year of pandemic.

So what is the key to controlling those expenses? Fuel Cards. We at Express Freight talk a lot about the impact of fuel cards. But most important is understanding the different types of fuel cards and what each offers. 

Not all freight fuel cards are created equal.

Let’s be honest, being educated on which fuel card is best for you can be the difference between making a 1% impact versus a 20% impact on your bottom line. 

Take a look at the two main categories of fuel cards:

1. Just the card, keepin’ it simple – just give you access to purchase fuel using a card but with no options or noteworthy features
2. Give me the Bells and Whistles – a full suite of bells and whistles, including fuel discounts and/or a line of credit

The key to identifying which card type makes the most sense for you depends on your goals. 

At Express Freight Finance, we offer the EFS Card. 

Our card is a great way to help take a bite out of the higher fuel prices we’re experiencing right now. While other carriers are feeling the pain at the pump, with our card and discounts, you’ll be able to manage your fuel expense and help your bottom line.

Don’t let rising fuel prices trip up your business, we’re happy to talk to you about if our fuel card works for you or if there is another that makes more sense.

Express Freight Finance is smarter by the mile.

The post Freight Fuel Cards Are Not Created Equal. appeared first on Express Freight Finance.

Actually thanks to several factors, it could be worse this year. 

Here’s what’s happening:

1. Covid restrictions are Loosening

2. OPEC has been tightening exports around the globe

3. The industry believes that the new US administration will restrict drilling throughout the united states driving up prices on the current supply

4. The refineries are switching over from winter to summer blends and in the process, cut production every year around this time for a few weeks

Here’s the kicker in all of this, fuel costs make up about 40% of operating expenses (the single largest expense).  Given all of these factors, the expectation is that diesel will climb above $5.00 a gallon. 

There are a couple of things you need to keep in mind as you head into the summer months.

1. Cash Flow will be even more critical this year Is your cash flow stable enough to keep up with the ongoing price hikes? Are you ready… do you have a way to ensure you will have the operating capital needed to keep running?

2. Save Costs on Fuel Wherever Possible: This is going to take a huge bite out of your profit this year. We can help take some of the pain away. Get our fuel card today and take advantage of discounts at over 8000 fuel stops across the country. Our fixed and cost+ discounts will help you save up to 60 cents per gallon, depending on the fuel stop. And, that’s off the cash price! Don’t take on these fuel price hikes alone.

Don’t delay. Partner with Express Freight and make sure you are ready to weather the price-hike storm with stable, predictable cash flow! Our freight bill factoring program can help ensure you will have cash from delivered loads when you need it.

Call one of our sales reps today and get set up with our program so you will be ready to weather the storm.

Express Freight Finance – smarter by the mile.

The post Fuel prices are on the Rise – Already Over $3.00 a Gallon! appeared first on Express Freight Finance.

“Retail Sales Explode in March”

“Third Round of Stimulus provides a huge boost to consumer economy “

“Freight Volumes Push Higher“

After a roller coaster of a year last year, 2021 is starting off hot for the economy and in turn the freight market. 

As of Friday, April 16th, The DHL Supply Chain Pricing Power Index is weighted heavily in favor of carriers. 

MarketFIT from ExpressFreight tells us the same thing. Designed to finally put market data in the hands of carriers, MarketFIT means we can zoom in even further. For example, here are the top ten gaining markets from last week: 

• Fayetteville, AR
• Tifton, GA
• Joplin, MO
• Cape Girardeau, MO
• Rock Island, IL
• Dubuque, IA
• Savannah, GA
• Erie, PA
• Duluth, MN
• Pendleton, OR

(Click here to learn more about MarketFIT).

Let’s look at some of the signals:

Most industries are joining the party. 

Economic recovery is accelerating. And it’s not just the tech industry that’s growing. 95% of S&P stocks are trading above their recent averages, which means the retail, grocery, and healthcare sectors are heading in the right direction. 

The third stimulus is fueling consumer confidence. 

In March, tens of millions of Americans received the third stimulus payment. Spending goes up, freight volume follows, and carriers will continue to hold the leverage in rate negotiations. 

Three Ways to Take Advantage of this Market

1.) Reduce your deadhead miles

When there is plenty of freight in the market, every mile matters. It is common for deadhead miles to amount to 15% to 30% of your rolling miles annually per truck. Your ability to cut deadhead miles is only as good as your data. Pinpoint your next pickup by relying on the data brokers and shippers have historically used as leverage against you.

In this blog post, we share some surprisingly simple ways to cut your deadhead miles today.

2.) Be more assertive as you negotiate rates

When you have near-time market data riding shotgun, you have more leverage than you might think. Too many brokers and shippers have benefited from keeping drivers in the dark. In short, don’t bring gut feelings to a data fight. MarketFIT From Express Freight Finance can help. (link again to MarketFIT page?) 

3.) Look for ways to grow your business beyond what it is today.

There are many routes to the ideal destination for your business. Whether you’re looking to expand your fleet, invest in new equipment, or simply optimize your cash flow, make sure you know your options. In a white-hot market like this, growth is yours for the taking. Just don’t let the opportunity pass you by. 

Strike while the iron is hot.

At ExpressFreight Finance, our job is simple: To keep you on the road. We know every circumstance is different.  Give us 15 minutes to understand the challenges you’re facing and we’ll develop a custom strategy to keep your momentum moving in one direction: forward. 

The post The Market is hot. Take Advantage of it. appeared first on Express Freight Finance.

Does a Driver Shortage Exist?

The discussions about a driver shortage have been going on for years, with analysts claiming a shortage doesn’t really exist while others point to the same data and claim the shortage is very real. The truth is that the situation is very real, but it all comes down to semantics. When demand is high, the number of shipments that need to be hauled exceeds the number of drivers available to take those shipments. This is represented as a driver shortage. COVID-19 brought about a period where there was no driver shortage, but that didn’t last long. Logistics were quickly reconfigured to keep supply chains moving throughout the pandemic. Now, as certain industries and states are relaxing restrictions, the demand from shippers and brokers is on the rise, and the trucking industry is experiencing a shortage of drivers once again.

A New Lease on Employment

One of the biggest challenges in mitigating the driver shortage in the past has been sourcing and retaining truck drivers. Economic conditions over the past few months have led to a rise in unemployment across the United States, as various industries furloughed employees or simply closed their doors. At the same time, supply chains are ramping up for carriers of all types. People want to work, and trucking offers a stable career path in an industry that is the foundation of our economy. Truck driving schools are physically expanding their facilities to accommodate new students, which will in turn serve to close the driver shortage. The trick will be retaining those drivers once the economy starts moving again. If fleet owners can offer incentives to keep new drivers on board and showcase trucking as a lucrative and long-term career move, the industry may be able to reinforce the workforce for years to come.

The post Trucking Focuses on Hiring to Ease Demand, Driver Shortage appeared first on Express Freight Finance.

Waiting for Payments Hinders Success

Despite the much faster rate at which the world does business, freight invoices are still issued with staggered payment schedules of 30, 60, and even 90 days. Before the pandemic, staggered payment schedules would place a strain on cash flow. Now, as the trucking industry is picking up speed, gaps in revenue of 30 days or longer can force operations to grind to a halt. With traditional lenders tightening their requirements for all industries, including trucking, loans are going to be out of reach. At the same time, trucking companies do not need to take on unnecessary debt from loans in the current economic climate. There needs to be a way to eliminate long waiting periods to get faster access to revenue.

Eliminate the Wait

Freight factoring eliminates staggered payment schedules and converts unpaid receivables to cash within 24 hours. Instead of waiting a month or longer to receive payments from brokers and shippers, trucking companies and owner-operators can get quick access to the revenue they are owed. What’s more, freight factoring is not a loan, so credit scores are preserved and no debt is placed on the books. Factoring is simple, fast, transparent, and can be used to unlock revenue tied up in receivables that typically sit for 30 days or more before your clients make payments. By using freight factoring trucking companies also eliminate the need to perform collections, because receivables never get a chance to “age out” due to lack of payments.

At Express Freight Finance, we provide fast and comprehensive factoring services for trucking companies and owner-operators, nationwide. We also provide a suite of tools you can use 24/7/365 to track payments and manage your account. Contact Express Freight Finance today to get started.

The post Why Wait on Payments from Brokers and Shippers? appeared first on Express Freight Finance.

From industrial manufacturers to Main Street, the economy is in an uncertain state, despite what a few lawmakers might claim. Yet despite uncertain economic averages, the trucking sector is pulling ahead of almost every other industry.

The Trucking Sector and New Economic Demands

Since March, businesses and consumers alike have been making purchases and offering goods online. Bulk industrial supplies, groceries, and more can be purchased on websites or through mobile apps, which has given e-commerce its biggest lead to date.

This also means that the trucking industry has experienced huge demand for spot trucking and LTL shipments. In fact, the trucking sector now has more leverage on LTL pricing than shippers and brokers, so fleets and owner-operators can push for larger earnings. Disruptions in the supply chain pushed more freight to spot trucking at the start of the pandemic, and enough time has passed for the trucking industry to handle new routes and demands.

Adaptability is the Key

Between the pandemic and now hurricane season, the trucking sector has had to remain agile and adapt to market changes. While the storm season varies in intensity, it is at least predictable. The COVID-19 pandemic, however, has been unpredictable and disruptive.

Regardless of reopenings and restrictions, the trucking industry has been meeting challenges caused by nature, the coronavirus, legislation, and much more, only to stay ahead of economic averages. No one can say how long the health scare will last, but if the trucking industry can keep adapting, the rest of the economy will eventually fall into line and make the necessary adjustments to start growing again.

One thing is certain: the tremendous work the trucking sector is doing to maintain supply chains for consumers, the medical field, and other industries is one of the major reasons why they are pulling ahead of economic averages.

The post Why the Trucking Sector is Exceeding Current Economic Averages appeared first on Express Freight Finance.

Shippers and Brokers

Apart from direct clients, trucking companies get revenue from jobs with shippers and brokers. However, even after jobs are completed, shippers and brokers can take a long time to make payments on their invoices. A lot of the delay comes down to the standard business practice of issuing invoices with 30, 60, and even 90-day payment schedules. Staggering payments for a month or longer can place a large strain on cash flow, making it harder for trucking fleets to cover overhead, make payroll, or keep operations rolling in general. If there was a way for trucking companies to speed up cash flow, they could maintain a source of working capital instead of playing the waiting game.

Speeding Up Cash Flow

There is no way to make shippers and brokers pay faster. They operate on their own schedules and generally adhere to the staggered payment schedules on the invoices they receive. To avoid the wait and speed up cash flow, trucking fleets use freight factoring. The method is simple: once an invoice is generated, a trucking company can submit that invoice for factoring. Once received and approved, the invoice is converted to cash, and funds are made available within 24 hours. This allows trucking companies to eliminate long waiting periods between payments and boost cash flow, so they have ample working capital on hand. Additionally, freight factoring is not classified as a loan, so fleets can preserve their credit ratings and avoid debt.

Speed Up Your Cash Flow Today

Express Freight Finance offers fast and comprehensive factoring services to trucking companies throughout the United States. At a time when working capital is essential to business success, eliminating waiting times caused by staggered payment schedules can boost finances for your trucking company. If you want to speed up cash flow for your fleet, contact the team at Express Freight Finance today.

The post Speeding Up Cash Flow for Trucking Fleets appeared first on Express Freight Finance.

Heavy Vehicle Use Tax

Among trucking taxes, the Heavy Vehicle Use Tax places one of the largest financial strains on owner-operators and fleets nationwide. In broad strokes, the Heavy Vehicle Use Tax is a $550 fee levied per year per vehicle in use. Proportionally, owner-operators and small trucking companies feel a greater strain than bigger fleets compared to the amount of revenue coming in.

But no matter the size, suspending the Heavy Vehicle Use Tax would allow the trucking industry to retain capital that could be put to efforts such as hiring, growth, marketing, vehicle maintenance, or anything else needed to keep the industry moving.

Federal Excise Tax

The Federal Excise Tax on the trucking industry is, by percentage, the highest tax of its kind. Much like the Heavy Vehicle Use Tax, the Federal Excise Tax levies fees on trucking equipment, specifically for new vehicles, resulting in an average of $20,000 per new vehicle purchased.

Purchasing new vehicles has been on a downward trend for over a year, and data from the ATA shows that roughly 60% of fleets would consider purchasing new vehicles if trucking taxes were suspended or eliminated. At a time of economic instability, suspending trucking taxes would give fleets and owner-operators more financial stability.

Trucking Taxes and the Bigger Picture

Boosting the economy starts at the foundation, not at the top. The trucking industry is that foundation. The trucking industry moves products and raw materials for every business in the United States. By burdening fleets and owner-operators with heavy trucking taxes, an economic rebound and further economic growth will, at the very least, be delayed.

If Congress eases, lowers, or suspends trucking taxes, the freight industry will be able to operate more efficiently, and if the foundation of our economy can retain more capital, then other businesses will be able to get back on their feet much faster.

Express Freight Finance will continue to follow this topic for further developments.

The post The OOIDA Wants to Lower Trucking Taxes appeared first on Express Freight Finance.

Experienced Truckers Understand Compliance and Safety

Experienced truckers, despite what some might think, are not old. There are plenty of truck drivers in their 30s and 40s who have years of experience under their belts. With guidance from the OOIDA to focus on safety, experienced drivers understand the rules and regulations of the road better than most.

They also understand compliance and why new directives come down from above from time to time. Experienced truckers not only know how to lower fleet expenses through safety, but they can also act as mentors to new and less experienced drivers to make sure guidelines are followed company-wide, which can have a cumulative effect on the whole company.

Ensuring Retention

Retaining experienced drivers can be challenging. Losing drivers with experience and understanding in an industry with growing turnover rates could make the driver shortage a very real challenge in the near future.

Trucking companies need to find a way to retain experienced drivers in a way that is meaningful and not just an afterthought. Obviously, monetary compensation is a good incentive, but trucking companies need to keep in mind that experience varies from driver to driver and that performance needs to reflect those years on the road.

Some trucking companies are even trying out hourly wages for experienced drivers to compensate for detention time because they add value to the company on and off the road. Other fleets have started mentoring programs to recognize experienced truckers and have them coach new hires or walk people through compliance and regulations with a small monthly bonus in addition to their regular pay. And sometimes, a simple “thank you” is all it takes.

The post The Importance of Retaining Experienced Truckers appeared first on Express Freight Finance.

E-Commerce Has Taken the Lead

The trucking industry experienced a growing demand from e-commerce shipments, though the spikes typically occurred during the holiday season. Once the COVID-19 pandemic hit, businesses shifted their presence from brick-and-mortar establishments to online stores to meet the change in consumer attitudes.

Throughout 2020, e-commerce has been running high, to the point that major retailers are closing their physical locations on Thanksgiving Day. This is a major shift that could have huge repercussions for trucking companies that are not ready to adapt, and medium-duty vehicles play a big part in long-term success.

Contraction and Medium-Duty Vehicles

E-commerce has caused certain supply chains to contract because truckers aren’t hauling full loads of clothing, electronics, and similar consumer goods. This means that if some trucking fleets do not adapt, their operations could end up running inefficiently, as large trucks carry less-than-capacity loads across the country.

Shipping prices could dip lower than operating costs and disrupt cash flow. With the rise of e-commerce, customers are expecting last-mile delivery, which would also be inefficient for fleets with large trucks. Switching to medium-duty vehicles allows trucking companies to kill two birds with one stone. Medium-duty vehicles can, proportionally speaking, carry fuller loads for their size and service areas that fall outside of main trucking routes.

This gives them the ability to provide the last-mile service that customers demand without having to do endless hand-offs between different shipping companies. This gives trucking companies an opportunity to generate additional revenue by adding medium-sized vehicles. Smaller vehicles also come in electric and hybrid variants, which can cut expenses in the long run.

Making a Smooth Transition

In order to make revenue gains with medium-sized vehicles, trucking companies need to make that first investment, which requires capital. Making an abrupt shift while waiting for revenue from clients and brokers can place a strain on cash flow.

To ensure a smooth transition, trucking companies use freight load factoring to turn outstanding receivables into immediate cash. At Express Freight Finance, we offer comprehensive freight load factoring nationwide, so trucking companies can build up capital reserves without loans and supplement their fleets with medium-duty vehicles. Contact our offices today to get started.

The post Trucking Companies Supplement Fleets with Medium-Duty Vehicles appeared first on Express Freight Finance.