Beating the Freight Market with a Cash Flow Advantage
Motor carriers and freight brokers are taking a hard look at cash flow after two years of pandemic-driven volatility in the freight market and growing inflation pressure. Will you have enough liquidity to survive? Better yet, what can you do to thrive?
Demand has far outpaced supply for much of this period, and the trend continues. Record growth in spot market activity during Q4 of last year carried over to fill a historically slow Q1 period. The number of van truckloads posted from December 2021 to January 2022, for example, increased by 31.4%, according to DAT Solutions.
Carriers and freight brokers have been riding a tidal wave of pricing power, but inflation is crashing the party. January’s consumer-price index is up 7.5% from a year ago, accelerating from December’s 7% pace, and has been above 5% for eight months straight.
Profitability matters, but the most critical process for survival is to quickly turn orders into cash.
This guide covers strategies that will enable carriers and brokers to instantly liquify freight transactions to thrive in current market and economic conditions.
