What Do Freight Payment Service Providers Offer & What Are the Benefits?

For companies to grow and scale, adopting freight payment services that strengthen specific business processes is absolutely necessary. The multitude of advantages that technology provides allows parties across the board to benefit in many ways. Not only do these tools amplify efficiency but they also mitigate risk and lower costs.

They Offer Broker, Third-Party, and Carrier Factoring

The best freight payment companies offer broker and third-party factoring at a flat rate through accessible and streamlined technology. Other beneficial services include providing financing for receivables to freight brokers and offering quick pay at various rates to carriers. Another serviceable feature is carrier factoring with no minimums, no reserve, and a low flat rate. This provides carriers with obtainable options when trying to secure the best hauling contracts.

Load Board Integration Payment Management Helps to Keep Freight Moving Without Added Costs

The digital technology that freight payment service providers offer for shippers and brokers keeps freight flowing smoothly and substantially reduces costs. Integrating online load boards (that offer a listing of digital freight options) allows shippers/brokers to post loads and gather bids on freight from the expansive pools of quality options (from other brokers and carriers). Through this service-enhancing method, negotiating rates becomes simplified and instantaneous, including lane matching with real-time alerts when loads and trucks match. The accessibility that these tools provide allows for a shipping company to accurately measure capacity and have access to the best terms possible.

Prepaid vs. Collect Freight Are Other Options for Those With High Uncertainty

Having different options on freight arrangements eases uncertainty. With a prepaid option, the shipper is responsible for shipping charges and ancillary expenses. When using the collect freight option, the receiver covers the freight charges. This is also known as “collect upon arrival,” and includes any additional shipping charges.

Digital Credit and Cost Underwriting Is Useful to Helping Unlock More Value With Limited Resources

In the modern supply chain network, freight payment providers should offer solutions that empower logistics companies to grow. Even if a business has limited resources, unlocking potential opportunities should still be a possibility. Integrating a digital credit and underwriting platform to establish or maintain credit is key for growth and mitigating risk. As further explained by Jack Glenn of FreightWaves, “Not only does credit insurance allow companies to mitigate risks beyond their control and protect against non-payments, that same credit insurance also allows companies to explore growth opportunities with existing customers. Insured companies can sell on open account terms where they may have previously been restrictive or only sold on a secured basis.”

Benefits of Multiple Freight Payment Services

With a wide array of freight payment services and options, companies reap the benefits of convenience. Many manual processes have been replaced with modern technology that enhances business and amplifies efficiency. These accessible options allow organizations to lower costs and scale through automation without a significant amount of money or change. As these tools can be integrated with current systems, no rehauling of the entire system is required. These benefits include:

  • Better cashflow – Streamlined tendering and transactions allow for automated payment collection, for both commercial invoice processes and regular invoice processes.
  • Fewer delays in getting paid – No more confusion or delays on payments that cost the company valuable time and resources.
  • Lower risk – Risk is mitigated and minimized through accurate reporting and invoicing.
  • Increased cost forecasting – Insight and analytics provide companies with a deep understanding of current rates and deals.
  • Improved driver and employee morale – With magnified awareness, optimal deals can be generated resulting in both driver and employee satisfaction.
  • Business reputation gains – Good and fair business creates a reputation that has a ripple effect across the entire market, which leads to more customer acquisition.

Start Reaping the Rewards of Digital Freight Payment Services with HaulPay by ComFreight

In the modern fast-paced transportation market, businesses must do everything they can to stay ahead of the curve. By offering freight payment services that benefit shippers, brokers, and carriers, companies can exponentially grow without the major risk often associated with change. Improving business no longer has to come with overwhelming challenges. Start succeeding. Request a HaulPay demo today.

What Is and What Are the Types of Freight Payment Services & Options

Today more than ever, managing payment reporting and providing logistics excellence within the supply chain is essential for achieving continued growth and profitability. Finding the right mode of transportation can be challenging enough, but securing payments can be equally daunting. Network managers must balance local needs and restrictions with an increasingly global focus on transportation management and various freight payment processes. And with transportation costs increasing around the world, cost controls and guidelines have become more vital than ever for the modern-day transportation network manager. 

What Does Freight Payment Services Mean?

Freight audit and payment are vital services that keep the supply chain functioning smoothly by ensuring payments are made and received for services rendered during shipping. The freight payment process focuses on auditing and paying freight invoices promptly to prevent missed opportunities and payment delays. It also focuses on collecting the data needed to create records and reports that track freight spend, commercial invoices, and logistics payments throughout the supply chain. Global managers aim to standardize practices and collaborate with a worldwide partner to solve  challenges. The key to freight payment services is managing these expenses and overcoming difficulties with invoices and payments as efficiently as possible within the network.

Problems Surrounding Traditional Logistics Payment Processes

One of the most significant challenges associated with freight payment services is cost management. Reducing freight spend and lowering shipping overhead costs is vital for ongoing growth in today’s competitive global market. Any way the freight payment process can improve is critical. According to The Journal of Commerce Online, reducing freight spend can have a tremendous impact on profitability. Consider this: A shipper with $1 billion in revenue could end up paying $50 million to $100 million in freight spend. This same company could end up managing over 40,000 invoices in a single year. All of these costs and expenses can quickly add up and eat into profits. Therefore, freight payment process management is critical to achieving sustained profitability.

Defining the Top Types of Freight Payment Services

Knowing the various freight payment meanings is critical to understanding how they can impact the supply chain network. Developing industry and company-specific freight carrier payment terms can help managers to easily determine the right freight payment services for their unique needs. Some of the more common options include:

Broker or Third-Party Factoring

Freight brokers provide financing and payment reporting on behalf of the company, usually for a flat-rate fee, which enables shippers and carriers to focus on tasks other than invoicing. This is thanks to the use of online dashboards, apps, and innovative software.

Carrier Factoring

This unique option provides services with no minimums, no reserve and a low flat rate. Carriers experience additional peace of mind while securing the best rates with easy-to-follow steps that help to streamline the freight payment processes.

Load Board Integrated Payments

Shippers and brokers use online load boards to post loads and get bids from a vast pool of brokers and carriers. This allows for faster capacity management, easier rate negotiation, and access to the best freight carrier payment terms.

Prepaid Freight

When logistics managers and directors have a general idea of what their freight loads will cost to ship, a prepaid approach may help free up team members and give management one less concern.

Collect Freight 

This option for supply chain payment reporting focuses on the amount of freight that gets transported and presents the shipping rate based on volume, weight, or several shipments made. This method is based on a predetermined base fee.

Digital Credit and Cost Underwriting

Additional fees such as inspections, legal fees, customs and duty fees, and similar operational expenses also need to be considered when managing payments and finding the correct freight carrier payment terms. 

Maximize Profitability Quickly and Easily With the Right Freight Payment Options

From implementing the right freight payment software and processes to choosing from among the many types of freight payment available, it is essential that the freight payment services align with the needs and goals of the transportation service providers implementing them. Get a demo today of HaulPay, a ComFreight product, to see how the platform streamlines freight payment processes.

What Are the Credit Risks of a Commercial Shipping Company?

Credit Risks

When it comes to many factors in the modern-day, nothing gets done well without an assessment of risk. In the shipping market especially, there is a definite risk assessment—more specifically, an assessment of credit risks.

Risk management, while it accounts for your credit, is nothing out of the ordinary in different businesses, specifically when it’s something like shipping companies.

It’s not just about reducing risk. It’s about taking it, too. It’s not so much about defense but more about offense in order for shipping companies to survive.

Especially when deciding whether to finance or not, nerves about credit risk could and should come up. Even in something much older than the modern vehicle, like a shipping company.

If you’ve ever wondered about the credit risks associated with commercial shipping companies, we’re here to show what they are and why, ultimately, you shouldn’t worry.

What Exactly Are Credit Risks?

This is mostly defined as the possible loss of something happening to an individual because of another’s failure to meet the terms of a deal or make required payments.

This can come in the form of either postponing or otherwise leaving their dealings incomplete and unable to move forward, thereby breaking a contractual obligation in the process.

So, most of the time, before entering this kind of agreement, firms will evaluate the possible party for their capacity to fulfill their deals. They suss out if their reputation proceeds them in terms of trustworthiness.

Moving forward, we’re going to discuss the source and cause of credit risk in shipping and the different types of credit risk thereof.

Default Risk

Default credit risk is commonly known as the possibility or chance that a company or individual will be unable to make required payments, usually on a debt obligation or redemption values of a bond.

Lenders (or in this case, investors) are almost always exposed to this type of risk in any given business deal. Default means that there is a chance that the obligation will fall through.

At times, default risk can change due to outside factors, such as a flailing economy, or more often than not, a change in the financial health of a company.

The kicker here is that although the high is concerning, higher risk can lead to a higher return and end in a higher interest rate.

Downgrade Risk

This is exactly as it sounds, as downgrade risk means a financial loss to an individual due to another’s down sliding credit status. 

This term usually refers to when a specific security is triggered by a piece of qualitative and quantitative information. And that can lead to a decrease in the financial valuation of that security.

A downgrade can happen to a stock because of the deteriorating fundamentals of the company or the changing favor of the current marketplace or macro-environment.

Although a downgrade may lead to a decrease in contract value, it usually does not, however, lead to a default—thereby undercutting some of the risks involved in investing and when downgrading occurs.

Credit Spread Risk

The credit spread of a bond is when an investor who has purchased a longer-term bond is locked into one that pays too little. 

Changes in credit spread and credit-risk spread might result in financial losses. However, that does not usually mean that there will be a resulting default.

Credit risk spread sometimes depends on the strength of the current economy. In a stronger economy, credit risk spread is more important, as the chance of bankruptcy is lower in such an economy.

Bond interests usually are on the rise during stronger economies, hulling more interest in investment overall.

Essentially, depending on the economy, getting locked into a poorly paying investment can be either a greater or lesser concern.

Credit Risk in Shipping Companies

Its’ really no surprise that shipping is a pretty risky business, as there is exposure to freight payment and price fluctuations. This creates a possibility that agents might not be able to meet their contractual obligations.

Credit risk in shipping can be viewed from many different perspectives—whether it’s from the financier, an investor, a supplier, or even a derivative trader.

Regardless, the endpoint is much the same: for the most part, without risk, there is no reward. 

That taking a chance on an investment like shipping can result in a larger payoff in the future. Because even as the world continues to change, there could always be a need for helping those across the world with their cargo.

Easier Payment Assistance 

Nowadays, a customizable payment program can help the average freight broker schedule quick pay options in real-time.

These programs, like Comfrieght’s Haul Pay, can help check customer credit and receive advanced payments for peace of mind and security, eliminating your credit risk now and in the future.

With consistent one-day payments, the minute you press that bottom on your invoice to request your payment, it’s automatically yours. No worrying about waiting for your money or driving to your bank.

And with real-time updates, you’re immediately kept in the loop with your payment status or any important changes that occur.

Just Around the Corner

Here at ComFreight, all we wanna do is help in making your journey and your business solid, and in doing so, make your life easier, too.

Trust, problem-solving, respect, and passion for our customers are embedded in our DNA. And we hope that as the freight industry continues to grow and change, you continue coming to us to help you.

Our growing team is always on call to help you in any way you need when it comes to your business needs.

Contact Us

We hope that learning about different credit risks has been interesting for you and that you come by soon.

Whether it’s to answer questions about the freight industry or to provide tech solutions business-wise, we’re here for you. 

Our team is eager to settle any problems you may have. And making it optimal for your side of things to thrive is just as important as doing so on our side.

So, please, if you would like to ask any questions or find out more about Haul Pay, contact us here. See you soon!

What’s the Difference Between an Invoice and a Commercial Invoice?

invoice

Imagine running a successful shipping company where everything seems to run smoothly. One day, you come into work to find a customer complaint because their invoice didn’t accurately reflect their order.

This complaint came from a major customer, and your company won’t survive without their business. You do your best to make it right, but you need to avoid this situation in the future.

How can you do that? Keep reading to learn the difference between an invoice and a commercial invoice.

When You Send It

One factor that can determine the type you use is when you want to send it. For example, you send a commercial invoice after completing the work or shipping an order.

On the other hand, there are some types of invoices that you send before. If you want to give an estimate or have supply chain issues, sending an invoice with an estimate is a good option.

Another time you may send one early is for installment payments. When you offer a payment plan to someone with low credit risk, you can send an invoice each time the customer has a payment due.

The Number of Items

If you send one before shipping an order, you may have accurate information on it. However, things can change, and issues with any part of the supply chain may require an update.

When you need to change the quantity and overall order amount, you need to send a commercial invoice or some other type. That way, you can correct the error and ensure you receive the correct payment amount.

Even if you don’t make any changes to the amount, it can help to send a commercial invoice to act as a secondary packing list. Your customer will then know if something is missing, and you can fix any problems that arise.

What Else Goes on It

As a freight broker, you should also consider what goes on the type of invoice you use. For example, a commercial invoice includes:

  • Number of items
  • Volume and/weight of the items
  • Item descriptions
  • Packaging format
  • Overall value

Other types may contain different information. A company that provides a service may include the dates of the service and the total amount of hours the service took.

Knowing what type of you need to create will help you determine what to include. Then, you can make sure your customer understands what they’re receiving and what they owe to you.

Where It Goes

Another way a commercial one differs from other types is that it’s usually for international shipping. Using a commercial one for international orders can help the package go through customs more easily.

It can also help you collect your freight payment without having to be in the same country. Whether you’re shipping a package to a bordering country or a different continent, use a commercial invoice.

That will make it easier for everyone who handles the package. And you won’t have to worry about the package getting stuck at customs because it doesn’t contain a list of the contents.

Other Types

Perhaps you determine a commercial one isn’t the best option for a particular order. You should know how other types work and when to use them so that you can ship orders and collect payment.

Different invoices contain various pieces of information, and some are better in certain situations. Consider a few popular types of invoices and how you can use them.

Standard Invoice

A standard invoice is common among businesses that offer services to clients. The invoice will contain the names and contact information of both the business and the client.

It will also typically have an invoice number to help both parties keep track of invoice payment. The invoice may outline everything the business did in that billing cycle and include a total amount due at the bottom.

You can also use a standard invoice when shipping products directly to customers. Even if they pay online ahead of time, the invoice can show proof of payment and act as a packing list.

Credit and Debit Invoices

Maybe you decide to use a commercial one to collect a major freight payment or when working as a freight broker. But somewhere along the line, you need to change the amount due.

If you need to offer a discount or remove something from the original invoice, you can use a credit invoice. A debit invoice is another option, and you’ll use it when you need to increase the charges because of adding something to the package.

Another option is to combine the two, such as to add another item but also give a discount. You’ll use a mixed invoice to do that.

Pro Forma

If you aren’t sure if you’ll have a full shipment or you have other shipping issues, use a pro forma invoice. This is a specific type of invoice that lets you estimate what you will send.

While it’s more common for services businesses to use when giving quotes, a freight broker can use it as well. Then, you can adjust the invoice if you can’t ship the full order when you planned to.

Whether you’ve been having trouble getting products in or have full truckloads, a pro forma invoice is great. It can give customers an idea of how much they’ll owe, and you can make changes if necessary.

Final Invoice

The last popular type is a final invoice, and it’s what it sounds like. You will send a final invoice after completing a service or shipping a product order.

It goes into more detail about the order, such as the product size, color, and type. It will show the amount due, and it may reflect any pre-payments the customer made.

A final one doesn’t usually change because you only create and send it after completing every other step of the process.

Should You Use an Invoice or Commercial Invoice?

When shipping an order or offering a service, you need to use the right type of invoice. A commercial one is a popular option for international shipping because it contains information to assist with customs.

But other invoices are useful for domestic and international orders. Consider what information you want to include and if you’ll need to edit it later.

Do you need help with your logistics business? Sign up for an account today.

Brokers get a new edge with customizable digital payments

Brokers can improve their growth and increase carrier access with better payments.

In an industry that is becoming increasingly digitized, customization is king. Brokers with the capacity to meet their carriers exactly where they are are more likely to keep them in their network, ultimately making the relationship more fortuitous for both parties. 

Customizable payment programs – like HaulPay by ComFreight – offer brokers the opportunity to pay each carrier on a schedule that works best for them. Custom payment options allow brokers to offer quick pay when necessary while still utilizing standard payment methods in other situations. 

“We approach each client with a custom-tailored approach to support them in their payment needs and to solve each client’s problems respectively,” ComFreight CEO Steve Kochan said. “Customization includes the ability to provide white-labeled payment experiences for both carriers and customers while also automating payments to factors.”

Josh Holtom and Glenn Deweese, of freight broker World Options, said ComFreight’s HaulPay offering has been an integral part of streamlining its operations and growing their business from the ground up. 

“We want to be able to grow [World Options] as much as we can,” Deweese said. “ComFreight handles all the billing. Since we are a new broker, it is important to make sure our carriers get paid quickly in order to build our network.”

Offering various payment speeds to carriers enables brokers to enhance the carrier experience, leading to greater loyalty and flexibility, according to Kochan. This is especially important when brokers are newer to the market and are working to build a new network of relationships and immediately gives them a competitive edge to larger counterparts. 

The perks of using a system like HaulPay do not only apply to brokers, though.

“Carriers are also able to manage what payment speed they want to get paid at and can self-manage their set payment terms, without requiring direct management or time from the broker,” Kochan said. “This is also available on the broker’s customer side. Meaning the broker can offer various payback terms to customers, leading to more flexibility in terms without sacrificing the broker’s credit history and payments to carriers.”

When a broker uses a customizable payment program, carriers and shipper customers get flexibility without the broker having to risk its own credit while improving the experience for both sides of the transaction. ComFreight is able to finance payments without the traditional trappings of factoring programs and can even absolve the broker of the risk of chargebacks or non-payments due to credit issues with their shippers. 

“ComFreight began as a load board, but after talking to both carrier and broker users about their other big challenges we realized that payments and credit terms automation was the area we needed to focus on and have been quietly developing a product and API to solve these issues for several years now,” Kochan said. 

Picking winning freight customers as lockdowns persist (covid-19)

The economy has changed in the face of the COVID-19 (coronavirus) which brings many challenges to small trucking and logistics companies. Is there a way to choose your customers or who you haul loads for? Well if you’re lucky enough to dial it in, there are some areas that are booming.

As various parts of the supply chain become hampered by limits to import volume from China and various industries winding down (like the auto industry for example) there are many sectors that are winding up or having record volume of both business activity and freight.

Some of these might seem obvious but it’s worth mentioning these sectors and other concepts that will help you continue to operate and even grow your business during this unprecedented time in history.

So what are “staple” industries right now?

The obvious ones are thought of as related to food, but generally, we think that these sectors will stay stable or even grow in volume, which could potentially offset some of the volume depression in the freight market.

As we have seen with WTI crude oil hitting negative levels, some areas of the economy that were previously “booming” have cooled off or gone off of a demand cliff. A lot of this can be deduced by common sense.

  1. Food and Produce
  2. Medical equipment and supplies
  3. Products that support farming and agriculture
  4. Defense contractors

Some are more counter-intuitive, but would not be considered staple products. Since almost no retail, aside from essentials and some other related products, are really selling and grocery and food stores are the only walk-in stores that are definitely staying open regardless of counties or states that are trying to reopen in a patchwork, you’ll have to look carefully.

If the business you’re looking to haul loads is entirely e-commerce based they may actually be having a boom. This could be a good customer so ask them honest questions.

As with any customer selection, credit should be a top consideration. For more help with credit decisions and ensuring that you get paid or can pay your carriers quickly let us know and we’ll be able to help you out with our HaulPay product.

In the meantime stay safe and keep hauling where you can.

COVID-19 Response

Hello Everyone,

The ComFreight team recently activated its contingency plan for COVID-19 given the sweeping social distancing requirements being enacted by the Federal, State and local governments across the country.

I want to advise you that our team has been prepared for some time for remote work scenarios as well as working within a crisis situation. We have even offered staff nutritional support and have offered to cover any extra equipment that they need to be comfortable and at least as proficient remotely as they were while working on site.

We want you to know that we’re in this with you and that we are on top of all operations, technical and support requests. Logistics plays a super important role in the critical infrastructure of resupplying the community in times of crisis.

We have your best interest in mind and are prepared to walk you through credit decisions or risk mitigation actions to ensure all of us not only survive the market side of this crisis but come out the other side able to quickly thrive.

Our commitment to our users and customers remains our primary focus as a team and if you require any specific assistance related to the outbreak please let your rep or contact here know and we will do our best to assist.

More updates will be posted as they become relevant.

Thank you.

Steve Kochan, Founder & CEO, ComFreight HaulPay.

How to Find More Hauling Contracts (And How to Do It Fast)

You can ensure the longevity of your trucking business by making sure you keep jobs in the pipeline. 

In the trucking business, miles equal money. Whether you own a truck or a fleet, you need to keep your rig or rigs moving to make money, so you’ll need to put careful thought – and work – into finding loads and contracts. 

Finding work and hauling contracts is one of the most important parts of running your hauling business. However, you can manage your resources better by finding work that pays well. 

For many hauling operators, this is the most challenging part of owning a trucking business. 

Finding Your Ideal Customer 

The best way to find the perfect clients is through local industry associations. This doesn’t mean trucking associations. In trucking organizations, you’ll only find competition. 

What you need to do is find out which organizations your ideal customers have joined. These organizations offer opportunities for phenomenal growth. 

As an example, imagine that you want to move retail goods. The first thing you need to do is to find a local retail organization and apply for membership. 

Alternatively, you may want to haul automobiles. In this case, you need to look for organizations that represent the interests of car dealerships. 

There’s an organization for almost every industry. You don’t have to focus on one kind of industry. Your ideal customers may do business in several industries. 

You need to think about the kind of customer that you can best serve as well as ones that offer the most profitable opportunities. Focus your energy on landing those clients and contracts.

Some associations only allow industry-related companies to join their group. However, others allow corporate partners to join. These kinds of organizations are your ticket to finding new loads and contracts

How to Get Loads for Trucks 

Another way to find loads is to partner with a freight broker. Freight brokers serve as intermediaries between shippers, truckers and clients. 

If you’re just starting in the trucking business, a freight broker may help you get started. Freight brokers work with clients that range from owner-operators to fleet owners. 

They’ll do most of the work involved with finding loads to run. This work includes negotiating rates

Brokers make it relatively easy to figure out how to find loads to haul. They already have established relationships with shipping companies. 

However, their services aren’t cheap. What you save in trouble, you’ll pay in cash. Make sure to watch out for hidden fees when using the services of a broker.

Hiring In-House Talent 

You can also hire an experienced dispatcher who knows how to find truck loads. Along with the new hire, you’ll also gain access to their trucking contacts. 

An experienced dispatcher can also perform administrative duties for your company. This may include services such as accounting, collections and billing. 

Some dispatchers have their own companies and perform work for independent drivers. Most importantly, they’ll make sure that you get paid on time. 

You can also check out load boards for available work. A load board will connect you directly with clients. If possible, take advantage of any free trials to make sure that you’re not wasting your time. 

You can also look into government contracting to find loads to haul. Often, government agencies will outsource their needs. This happens frequently in logistics. 

Don’t limit yourself to the federal government. State and local governments need goods moved as well. 

Across the United States, there’s a wealth of government agencies. However, there’s extra paperwork involved before you’re eligible to work with the government. 

Alternatively, you could partner with a company that already has a government contract. Your city or state government offices can give you more information about finding work in this manner. 

The Search for Hauling Contracts

Prospecting for loads is a lot of work. Nevertheless, it’s how many trucking businesses start

In the trucking business, earning long-term money starts with research. You need to find out who’s moving goods in your area, what they’re moving and where they’re moving it. 

You can find out this kind of information by cold calling and making office visits. This is as simple as introducing yourself, setting up a meeting and asking questions. 

Your research may lead to unanswered queries. In these instances, you need to remain persistent and follow-up with another call or office visit.

How to Get Trucking Contracts for the Long-Haul 

You don’t want to spend every day clawing for trucking contracts. However, that’s exactly what will happen if you depend solely on job boards to find loads to haul. 

You must develop an effective strategy to help you find loads and grow your business. Taking on anyone who needs goods moved is not a sustainable strategy. 

You must pick and choose who you work with. In the beginning, this strategy may prove difficult, but it will pay off over time as your business grows consistently. 

Are You Ready to Generate Sustainable Income? 

Running a trucking business is hard work. You must divide your time between marketing, managing hauling contracts and driving. What’s more, the trucking business is highly competitive. 

At the same time, you must keep your rig in top condition, monitor load boards, work with brokers, cover your expenses and manage administrative functions. It may seem impossible to run your business without a small army to support you. 

ComFreight is at the ready to serve as your small army in the trucking business. Sign up for free today to learn how our app can help you build a sustainable trucking business.

7 Trucking Industry Trends That Are Transforming the Trade

According to the American Trucking Associations, trucks move about 71% of the nation’s freight. 

A huge percentage of the revenue collected represents the nation’s freight bill. This means, trucks play a crucial role in people’s lives and the economy as well. 

The new trucking industry trends can only be expected to allow the industry to contribute more.

The trucking industry has also undergone several changes. These changes have greatly affected the way the industry operates, its overall productivity and development.  

Though new regulations imposed some of the changes, others were influenced by the economy and technology.

Here are some of the new trucking industry trends that you are most likely to see:

1. Growth in Technology

Technology has improved over the years, and this has caused a lot of changes in various industries. The trucking industry, too, has not been left behind when it comes to growth in technology. 

Trucking companies are today adapting technology trends and using different software programs to ensure an efficient and streamlined operating system.

Having integrated systems, for example, ensure quick pay and smarter invoicing, and this automates workflow. 

The trucks today are also equipped with better technology that improves the functionality of the vehicle. Tracking orders is a concept that is helping trucking companies to keep track of customers’ orders, and relay the same information to the customers. This also ensures better customer service delivery. 

2. Reliance on Data Analytics

Data analytics is an essential tool that businesses all over the world use. It has helped in boosting the impact that companies have. Trucking companies have also realized the importance of relying on data analytics. In the coming years, this is yet another trucking industry trend that will greatly change this industry.

This trend is being applied to the corporate world and the trucks, and it can be used to identify areas that need improvement so that the operations can run more efficiently. With this, trucking companies can examine, analyze, and also interpret customer trends.

Studying the data collected also helps companies make better decisions like manufacturing issues, the risks, cost of tariffs, logistical requirements, and more.

3. Mergers

In 2019 alone, almost 800 U.S. based trucking companies filed for bankruptcy. This was as a result of harsh market conditions that led to several companies choosing to close down their businesses rather than merging with other companies. 

To ensure that they do not go under, trucking companies are more likely to merge with other companies if the market remains as it is. 

When it comes to mergers, trucking companies have two options. The first is to merge with another trucking company so that they can pool their resources together, and keep operating. 

The second option is that the company can also merge with a company from a different sector so that it can provide a wide range of services. This will help the trucking company stay afloat until the market stabilizes.

4. Influence of E-commerce

The e-commerce industry has also grown over the past years. People today buy a lot of products online, thus contributing to the growth of eCommerce. It is no surprise that this is a trend that has made its way to the trucking industry. 

Online stores depend on trucking companies to deliver goods to the consumer on time. Therefore, as the e-commerce industry grows, it will transform and improve the trucking companies as well. With e-commerce expected to grow even further in 2020, you can only hope that the trucking industry will record significant growth too. 

5. Urbanization

The growth of urbanization is also most likely to influence the trucking industry. The country has experienced development, with rural areas being converted into urban areas. Such changes transform the trucking industry positively. 

Urbanization will ensure that trucks can quickly and easily get to the parts of the country that they were not able to get to before. This will also widen their reach and scope and allow them to increase their customer base. In the long run, companies will be able to make more money.

The once-rural areas will also be able to have all the facilities that urban areas enjoy, and this will add to the growth of such towns.

6. Change in Production Locations

Several trucking companies have maintained their production location for a very long time. However, companies are now considering getting newer locations so that they can conduct production operations more effectively and also be able to meet the demands of their current customers.

This trend is not exclusive to the trucking industry. It is something that will spread across the freight and transportation industry. This is because of the need to provide better services to the customers and meet the demands of the consumers.

7. Changes in Prices

Truckers operate at relatively low prices. Their prices are far less than that of the average American. This has been influenced by the lack of jobs and the financial status of trucking companies. 

The companies charged less over the years so that they can get work.  This trend is likely to change with time.

If the market continues to decline, the companies might be forced to charge even lower than before, but with positive growth, the prices can go back to what they were before the decline. Whichever way it goes, there is going to be some significant changes to the prices that the companies will charge for their services.

Lookout for These and More Trucking Industry Trends That Will Change the Trucking Industry

It is quite clear that over the next few years, there will be a significant transformation in the trucking industry. 

With these are more trucking industry trends expected to influence this industry, one can only hope that truckers will experience more growth. These trends will alter how trucking companies function.

Are you looking to streamline your business, automate your workflows, or ensure a faster payment system? Visit our website and check out our services. Sign up for free or get in touch with us for more information. 

Commercial Shipping Insurance Explained in Plain English

commercial truck insurance requirements

All truck drivers need to have truck insurance.

Truck insurance is one of the most important things to have when it comes to driving commercially. You need protection in case something bad happens, like an accident. With insurance, you’ll have the means to pay for damages done to others and their property.

You may not be aware of the commercial truck insurance requirements. Anyone that would like to hire others to drive their company’s trucks will need to provide them with insurance. You’ll also need insurance if you’re an owner-contractor.

We’ll go over the requirements, costs, and provide you with more information about commercial truck insurance. Read on to learn everything you need to know.

What Is Commercial Truck Insurance?

Commercial truck insurance is different from other popular forms of insurance. While truck insurance is a type of auto insurance, it offers a variety of coverages due to the dangers of large trucks.

A company will provide insurance that protects the driver, vehicle, and other people or property damaged by the truck. 

Someone that’s looking to find owner-operator contracts will need to look into primary liability insurance. Primary liability is aimed towards protecting the other people and vehicles involved in an accident. You can opt to get a policy that also includes protection for your vehicle.

How Much Is Truck Insurance?

The exact cost for a commercial truck insurance policy will vary depending on who you get it from and what your policy covers. You’ll be spending more when you start including extra coverage in your plan. Most policies will run you anywhere from $5-7k, which is about 3-4 times higher than personal policies.

Commercial Truck Insurance Requirements

You don’t have to worry too much about the insurance requirements when you’re looking for a policy because all policies are set up to meet the requirements. However, trucks are required to have a certain amount of coverage before they’re street-legal.

One of the common semi-truck insurance requirements is having $750,000 in coverage. This ensures you’ll have enough money to pay for anything no matter how much damage is done. You don’t need a plan that will protect your vehicle, but it must protect those that are damaged by you.

What Insurance Covers and Doesn’t Cover

Company vehicle insurance is designed to cover a variety of things so that you’re protected in any situation. Bodily injury is the most important part of an insurance policy as it protects someone that’s hurt by your truck. This will cover their medical bills and any lawsuit-related costs.

Should you damage property, your insurance policy will cover the damage that you’ve done. This type of coverage goes as far as covering the potential costs of getting new goods if you deliver them to the wrong location.

It’s common for most companies to advertise their business on their vehicles. Unfortunately, this can cause issues if people decide to file a lawsuit relating to false advertisement. Your insurance will provide you the means to properly defend yourself.

What commercial truck insurance won’t cover is a vehicle that isn’t a truck. This type of insurance is strictly for semi-trucks, so it won’t cover vehicles like buses, vans, cement trucks, etc. Most policies also won’t include coverage for driver injuries unless you pay more for the coverage.

If your vehicle is damaged during an accident in which you were at fault, the insurance also won’t cover that. Should you get a loss of income after an accident due to not being able to work, you’ll be responsible for getting back on your feet. 

You should also be aware that it’s possible to get coverage for loss of cargo. In cases where you get into an accident and cargo is damaged, there’s a good chance you can get it back without repurchasing it. However, this can cost a lot to cover because trucks are constantly carrying thousands of dollars worth of cargo.

The Use of Personal Auto Insurance in Businesses

Using an additional personal auto insurance policy is something that many people recommend. Doing this gives you an extra layer of protection in the event of an accident.

Because most insurance policies don’t offer driver protection as a core piece of coverage, having a personal policy could save you from spending a lot on medical bills.

You’ll also need to have personal insurance if you plan on driving to and from work because you won’t be using a company vehicle.

Keep in mind that personal auto insurance won’t offer protection for anything relating to your business. Although you may get into an accident while using a company vehicle, your personal insurance will not pay for vehicle damage. They’ll only offer compensation for damage done to you.

Start Looking Into Various Insurance Policies

There are a plethora of insurance companies that each have different policies. If you’re a truck driver, you’ll need to ensure you get the best deal. Whether you’re driving for a company or are an owner-operator, having insurance is necessary and will protect you while on the road.

Understanding the commercial truck insurance requirements will help you decide which one is best, but most of the policies you find will help you meet compliance. It’s always important to read the small print to make sure that you’re aware of exactly what is and isn’t covered.

If you’re an owner-operator that’s looking to make easy money, sign up with ComFreight today. We offer the best rates and routes, allowing you to earn more and get paid quickly.