As spot rates continue to drop, many carriers may be tempted to ‘ride out’ the market until they return—but this could be fatal to your hard-earned business.
To understand why, it helps to consider why rates are dropping at all.
With inflation putting a halt on spending, there is less freight to move. Couple that with the pandemic boom that caused a surge in the trucking labor market, and you’ve got countless truckers fighting for a small amount of freight.
To put it short, it may be a while before rates return to a normal state.
That being said, any company that goes without business for long enough simply won’t make it.
By foregoing opportunities because of spot rates, your income stops—but you’re overhead doesn’t! You’ll accumulate costs with no financial relief.
So how do you survive on low spot rates? Try some of these tips:
1. Know your operating costs.
If you don’t know where your money is going, it’s probably already gone.
By charting your expenses, you may be surprised by how much—or how little—you need to do to stay afloat.
2. Keep a healthy cash flow.
Low spot rates mean more loads to cover your expenses.
If money is tight AND you’re running from load to load, it’s critical keep your cash flow healthy to maintain your business. Factoring programs are a fantastic way to keep your business thriving.
3. Trim unnecessary expenses.
It’s amazing how much spot rates become manageable when you eliminate the $8 Starbucks Unicorn Frappe from your budget.
Little expenses can make a huge difference. When it’s survival of the fittest, every penny counts.
It’s a tough market, but you’re tougher.
If you need more tips for how to save during this time of low spot rates, we’ve attached a few more helpful articles below.
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The England Carrier Services (ECS) division offers various services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.