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4 Challenges Facing the Freight Industry for 2020

The freight industry has weathered a number of challenges throughout 2019. But as we head into 2020, there are a few key points that should be “top of mind” for anyone in the freight industry.

Scouting New Hires in 2020

As the Drug and Alcohol Clearinghouse becomes mandatory in January, carriers are expecting that the freight industry will lose a number of drivers.

Additionally, the hiring process will be more thorough as carriers crawl through the database to check the records of applicants. With increasing reports of the ongoing driver shortage, the freight industry will need to be prepared for increased hiring efforts in 2020.

Slower Growth in the Freight Industry

This past year taught carriers that the upswing of 2018 was an outlier. As manufacturers and other overseas companies adjust to tariffs, shippers are not ordering in the mass quantities they were a year ago. This means there is less demand placed on carriers.

While there is still growth in the freight industry, the rate is slower. This trend is projected to continue into the new year.

More Technology

As more tech companies get into logistics, expect more subscription-based applications for everything from detailed diagnostics to telematics and truck-to-carrier communications. New technology means additional training for fleet owners and drivers alike as cabs become more like airplane cockpits.

Cash Flow

To tackle the above challenges, carriers will need to maintain a strong cash flow. This means ensuring revenue is coming in at a speedy rate. More carriers are using freight factoring to eliminate the lag between payments from clients.Factoring helps carriers build up capital reserves, which can be allocated for hiring drivers, purchasing new technology, expanding into new areas, and reducing the need for loans.

Express Freight Finance provides working capital solutions to trucking companies of all sizes. Our freight factoring services provide turnaround on unpaid receivables within 24 hours, in addition to free credit checks on your clients, a personal account manager, and year-round access. To improve your cash flow, build up capital, and make 2020 an even more successful year, contact Express Freight Finance today.

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