Paying truckers faster

Access to capital for the majority of the 700,000 carriers that have fewer than 20 trucks is coming at a hefty price.  FreightRover Inc. plans to factor $500 million in freight bills as soon as the carrier sends the data from a phone app.  But fast payment costs these small carriers at 9.5-12%.  I don’t understand why companies that are crying out for capacity won’t pay faster.  Stats (source Hackett):
  • 2018 payment days – 56.7
  • 2016 payment days – 53.3
Van spot freight costs are up 20% YoY…. Source DAT
 
One consequence of global warming – the northern shipping route along the Russian northern border, from China to Rotterdam will cut 10 transit days BUT there are issues:
  • Big container ships can’t make it
  • There are no emergency facilities 
  • There are no trans-shipment ports for the efficient movement of goods