Monday, October 13, 2014

FREIGHT PAYMENT

Transportation providers paid 7.7 days late on average

Credit information provider Cortera says in monthly report that key suppliers get paid faster than occasional ones.

Cortera says in monthly report that key suppliers get paid faster than occasional ones. Shippers and logistics companies on average pay their transportation providers 7.7 days late in September, according to data released this week from the credit information provider Cortera.
Cortera releases monthly payment metrics for seven industries (of which transportation is one) based on data from more than 10 million businesses, representing more than $1 trillion in business-to-business transactions.
Of those seven industries, transportation ranked fifth worst in days beyond terms (DBT) in September. In turn, transportation providers paid their suppliers an average of 6.8 days late in September.
Cortera said there is a correlation between the length of DBT and outstanding balance a customer has with its transportation provider. For instance, a company with a balance between $2,100 and $6,499 paid its provider an average of 15 percent later than one with a balance of $6,500 or more. That gap jumps to 38 percent later for customers with a balance of $250 to $800, and 69 percent later for balances of less than $250.
The implication, Cortera noted, is key suppliers get paid faster than occasional ones.
Geography also matters. Cortera said transportation providers in Wyoming, South Dakota, Arkansas, New Mexico, and Hawaii got paid faster than in other states (2.2 days late in Wyoming). Meanwhile, states where payment to transportation providers was slowest was Louisana (15.7 days late), Nevada, New Hampshire, Maryland and Kentucky.