Trucking news and briefs for Monday, Nov. 22, 2021:
Alabama flatbedder offering ‘Driver Shortage Surcharge’ to drivers
In an effort to reward its drivers for weathering a tidal wave of holiday shipping demand, Birmingham, Alabama-based flatbedder Montgomery Transport is instituting a 5 cents per mile Driver Shortage Surcharge.
Effective Nov. 8, the over-dimensional freight and full transportation management specialist added a nickel surcharge on all loads, which will be passed on directly to drivers for a period of 90 days.
Montgomery Transport CEO Rollins Montgomery noted that with e-commerce expected to hit record levels this year, demand for local drivers, warehouse employees and drivers to support the final-mile support will be at a fevered pitch.
“This year has presented our industry with many challenges as supply chain constraints have forced all companies to adapt and discover new ways to push their businesses forward,” he said. “The labor force has been affected particularly hard within the transportation industry as many drivers have found new local opportunities and/or better pay in areas such as warehousing or final-mile delivery to support the e-commerce boom. We chose to address this issue by further investing in our best asset which is behind the wheel.”
Montgomery estimated that e-commerce shipments to be at an all-time high during the next 90 days as the holiday season approaches so the need for qualified drivers will only be amplified particularly within the flatbed space.
J.B. Hunt launches new transload service for New York/New Jersey
J.B. Hunt (CCJ Top 250, No. 3) announced the launch of a new transload service to assist shippers in the New York metro area experiencing nationwide congestion.
The new service will be managed through a recently expanded facility in Jersey City, New Jersey, that will provide port drayage, transloading and inland linehaul solutions. The facility is the first of its kind for the company and opens at a key time with the holiday season fast approaching.
“Our new transloading service will help customers accelerate freight movement and improve container fluidity,” said Shelley Simpson, chief commercial officer and executive vice president of people and human resources at J.B. Hunt. “It is the latest example of how J.B. Hunt is creating solutions for customers to improve the agility of their supply chain.”
The new transloading service provides a one-stop source for quickly transferring ocean freight into equipment for domestic transport. Shippers can leverage J.B. Hunt Intermodal and J.B. Hunt Highway Services to move freight outbound from the facility, providing line haul capacity to anywhere in the United States.
J.B. Hunt expanded its use of the facility in October to utilize a 25,000 square-foot area to establish the new service offering. The facility consists of ample on-site parking, offers 24/7 service and is located near all major railroads and port terminals in the New York area.
Financing firm offering equipment financing for start-ups
1st Commercial Credit, a nationwide funding company that specializes in accounts receivable factoring and trade payable financing, has introduced an equipment financing program for various sized companies, credit score ranges, and industries.
The company has a new funding program for companies needing up to $75,000 in equipment finance for start-ups.
For start-ups less than three months old, a large demand exists for equipment financing, the company says. While it has been difficult for business owners with less than two years of operatiors to secure equipment financing, 1st Commercial Credit says it is optimistic in providing financial services to higher risk clients.
The company says more than 60% of clients that come to 1st Commercial Credit for funding have less than one year since start-up.
says, "Equipment finance has always been a great alternative financial instrument for acquiring equipment without using your bank line or cash savings,” says Raul Esqueda, President of 1st Commercial Credit. “Our primary equipment finance clients are capped out with their existing lenders, have challenged credit, or have financial stress due to growth in sales. We cover a very wide credit score range for approvals many vendors and dealerships would appreciate."
