With the announcement of the rollout of COVID-19 vaccines in December, refrigerated trucks were conscripted as part of the Defense Department’s plan to deliver vaccines across the United States. While this is a huge positive for the country at large, carriers are also experiencing demand from other sectors for refrigerated trucks, creating tension for logistics, but also lucrative opportunities.
Vaccination Across the Nation
Multiple pharmaceutical companies have developed COVID-19 vaccines, and they all must be stored at temperatures well below the freezing level. As anticipated, the government is leaning on carriers such as UPS and FedEx, as well as other trucking companies that have the necessary vehicles to transport the vaccines quickly and efficiently. With a population of over 300 million receiving vaccines, the operation will require a lot of refrigerated trucks. FedEx has developed separate refrigerated storage containers to increase capacity and lower the strain on their regular fleets, but not every trucking company has that luxury. Other refrigerated goods might need to be staggered to make room for a nationwide vaccination initiative.
Opportunities for Refrigerated Trucks
Trucking companies that want to help with the initial rollout can, of course, volunteer their own refrigerated trucks. Others – specifically smaller trucking companies and owner-operators – can use their trucks for “last mile” vaccine delivery, or help pick up the slack for refrigerated shipments that have been sidelined. It goes without saying that the government will most likely compensate participating fleets and drivers for their services, but in the end, such a huge undertaking will require capital to cover fuel, maintenance, driver retention, and more.
Maintaining Working Capital for Refrigerated Shipments
While federal compensation and increased demand for capacity among refrigerated trucks is very good, the invoices generated will still come with the usual staggered payment schedules. This means that trucking companies and owner-operators will be waiting 30, 60, or even 90 days to see revenue for their hard work. Instead of playing the waiting game, savvy fleets and owner-operators are using freight bill factoring from Single Point Capital. By using our freight bill factoring services, trucking companies and independent drivers can convert their receivables to cash within a single day to boost cash flow, get fast access to revenue, and build up capital from the increased demand for refrigerated trucks.
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