Many trucking companies are facing challenges today. The reasons for this are complex, but the combination of lower rates per load, higher fuel costs, and shrinking margins is a significant contributing factor. Some owners hesitate to expand their businesses, while others are exploring opportunities. Based on our experience at Capital MBS, those who purchased trucks and trailers during the pandemic may face particular difficulties. 

During COVID-19, there was a shortage of trucks and trailers, and prices were elevated. Some people may have paid more than they should have for their equipment, including high interest rates. Many people bought their equipment and often paid more than they needed to. However, this did not matter as the business was doing well, and the rates per mile were high. 

After the rates per mile went down and the fuel cost went up, many owner-operators and small and big fleet companies could not keep up with monthly lease or financing payments. The used truck and trailer equipment market received many trucks and trailers for sale from companies going out of business or lender repossession. Many owners sold their units or gave them up for the bank to take, which unfortunately resulted in some negative consequences for their commercial and personal credit.

How to turn the trucking downturn to your advantage

In challenging times, opportunities can emerge. We speak with fleet owners on a regular basis and have observed that while many are facing difficulties and expressing concerns, a few are actively seeking out used and new trucks and trailers in anticipation of a potential market upturn. It is important to remember that when the market improves, meaning the rate per mile will increase and fuel prices go down, there will be a shortage of trucks. This will result in higher prices for these units, even if interest rates are high. However, this also means that one will be paying a much higher cost for trucks and trailers, which is a sign of a potential market upturn.

At Capital MBS, we understand the challenges you are facing, and we are here to help. We can assist you in locating trucks and trailers at great prices and obtaining financing or leasing. We invite you to fill out the application using the link below so that we may assist you in getting pre-approval and provide the support you need during these challenging times.