There is no doubt that recent shutdowns and all the disruptions caused by the global pandemic have affected the supply chain. Trucking operations across the country and worldwide have had to renegotiate even the most basic of processes to make freight factoring for truckers and freight shipping and operations more streamlined.
As highlighted recently by Vox, “in a bid to get cargo moving more quickly, the Long Angeles and Long Beach ports now plan to charge shipping companies a $100 fee for every container that isn’t unloaded after eight days, and the fee will increase by $100 for every day after that.” The new policy has been implemented to get shipper carriers, truckers, and approved brokers working together more effectively to keep the Port of Los Angeles operating 24/7 to get through the massive backlog and get trucking payment schedules caught back up as well.
This should help improve the rate at which truckers are getting paid when delivering freight. Trucking company owners see this as an opportunity to ensure timelier freight payments. Still, it can be problematic given the massive bottlenecks and long delays seen between transportation completion and receiving payment. Let’s take a moment to consider how the industry can improve and work towards getting truckers paid faster.
What’s the Usual Payment Window?
While most industries work on a weekly or monthly payment schedule—whether employee paychecks or other invoice payments—it can take much longer for trucking payments after shipping. It can often take shippers between 30 and 90 days to process invoices and pay them in full. That assumes the invoice factoring process doesn’t have any issues or additional delays. If there are disputes with an invoice amount, problems with the cargo being loaded and unloaded, or other hang-ups and delays, it can take even longer.
Why Traditional Freight Factoring Falls Short
Trucking companies are focused on getting cargo from Point A to Point B and then getting paid when delivering freight. Traditional freight factoring and payment management worked in the past, but it is no longer effective at handling the sheer volume of goods being shipped. It can also not manage omnimodal shipments and supply chain as effectively. The ongoing issue of trucking payments has revealed quite apparently that traditional factoring is full of fees, poor visibility, and complex processes.
After possibly months of waiting for shipments to be finalized and approved, any delays in processing can lead to even longer waits. Forms are faxed and discussed, papers sent and resent, and games of phone or email tag rack up even longer and more stressful wait times. Traditional methods are no longer effective and only add to the ever-growing problem facing the global supply chain and freight payment timelines today.
Why a Complete Factoring and Invoicing Solution Is Best
Imagine a container sitting a month before it is unloaded and the cargo inspected for invoicing and payment. This automatically adds another 30 days wait for that payment to be sent, processed, and finalized. Another thing to consider about freight factoring for truckers and payment delays is that the longer containers sit, the more likely something will be wrong with the contents. Thus issues with the invoice and payment will be further compounded for the trucking company.
Goods that sit months past intended shipping time can become damaged, expire, rust, and end up rejected and not paid for at all by the end of it all. Improving invoicing processes by working with a partner to create invoicing and factoring all in one can help ensure trucking payments are made in a timelier manner. A complete freight factoring and invoice solution can help create a faster, easier way to get to speedier freight payment and more reliable paydays!
Get Paid Faster With BasicBlock
Working with industry pros is the best option for trucking businesses worried about payment processing and invoicing backlogs. One of the biggest concerns truckers have today is getting paid when delivering freight and settling in a reliable and timely manner. Waiting for months to get paid for loads delivered in full according to terms and contractual agreements is no longer acceptable. Timely payment is not a novel idea and needs to be considered at all times when dealing with freight factoring for truckers and ensuring timely invoicing and payments. Get started with BasicBlock to discover a new way to better manage trucking payments and freight payments within the volatile market today.