The new administration is in place, and the new DOGE committee is gutting many federal agencies. As agencies shut down, rules are added or removed, and fuel prices increase in many areas, how is that going to affect freight factoring in 2025?
Changes to the Trucking Industry in 2025
What is likely to change with the new administration? Here are some of the changes that seem to be in the works.
Possible End to FEMA Loads
Some trucking companies make money driving FEMA loads to areas affected by disastrous storms and natural disasters. On February 11, 2025, the new president posted: “FEMA SHOULD BE TERMINATED! IT HAS BEEN SLOW AND TOTALLY INEFFECTIVE. INDIVIDUAL STATES SHOULD HANDLE STORMS, ETC., AS THEY COME. BIG SAVINGS, FAR MORE EFFICIENT.”
In that Truth Social post, he went on to say that FEMA is being reviewed and is under investigation. If FEMA is shut down, it would end FEMA loads for truck drivers. Individual states might need trucking companies to deliver supplies to affected regions, but they might not be able to pay high rates, so pay scales decrease.
Van, flatbed, and reefer per-mile rates currently average $2.05, $2.44, and $2.38, respectively. Generally, per-mile rates are lowest in the Northeast, South Central, and Southeast U.S. They’re highest in the Midwest and West. The one difference is that flatbed rates are lowest in the West. Meanwhile, FEMA loads have been known to go up to $5 per mile, which is almost double.
If your state takes over arranging the delivery of supplies to towns after a flood, blizzard, earthquake, wildfire, etc., you might not get more than that area’s average rate. Incomes decrease, but other costs are going up. Freight factoring ensures you have the cash flow to keep up with rising bills.
Fewer Regulations
On January 31, 2025, an executive order named “Unleashing Prosperity Through Deregulation” went into effect. This order reduces the number of Federal regulations an agency can enact. Any federal agency, including the FMCSA and NHTSA, must remove a minimum of 10 regulations for every single regulation it wants to pass.
With this new order, planned safety measures, such as automatic emergency brakes, that are designed to keep truckers and Americans safe may be canceled.
It makes it harder for companies to find enough drivers. While there were plans to allow drivers aged 18 to 20 to start driving between states, that may not happen. People who get their CDL before turning 21 will still be limited to in-state runs.
End of the Push Towards EVs
One of the first things the new administration canceled was the shift toward EVs. In order to reduce the carbon footprint and environmental damage, Biden’s administration wanted EVs to account for 60% of delivery trucks and 25% of long-haul tractor sales by 2032. Trump’s administration ended that. There is no longer a push to go electric. The EV mandate was eliminated on January 20, 2025.
Truck Costs Could Go Up
Aluminum and steel tariffs of 25% were imposed on February 10, 2025. Canada supplies over 50% of the aluminum used in the U.S. Much of the nation’s steel needs are met by Brazil, Canada, and Mexico. Tariffs will increase prices on things made with these metals, such as sheet metal, rivets, wheels, axles, computer parts, etc.
If your truck needs repairs, parts will cost more. New trucks will cost more as the price of materials increases. You’re going to spend more on things you need to keep your business going.
Decreased Goods Needing Delivery
Work itself may slow down. One of the very first changes was to deport illegal immigrants. In 2021, the Farm Labor Survey found that 21% of farm owners report being understaffed.
Farm Journal reports that over 4,700 undocumented migrants had been sent home as of early February. Almost 4,100 of them were Mexican. Many migrants fill positions on farms that most Americans won’t touch due to the low pay. If pay increases, grocery prices go up, which no one wants. Keeping pay low is essential to lower grocery costs.
As farms struggle to get crops picked before they start to rot, food isn’t leaving farms. That’s less work for the trucking industry. Also impacting this are the closures of agencies that provide some of the food grown in America to impoverished countries. Those supplies are also in warehouses going bad. An estimated $500 million in food is sitting in ports, ships, and warehouses waiting to be delivered, but USAID closures have made it difficult to do anything.
The Ins and Outs of Freight Factoring
Freight factoring is the best way to maintain a steady cash flow as you operate your trucking business. No one can predict where the price of fuel will be in a month, three months, or six months from now. In many regions, they’re already slowly rising.
In addition, tariffs on many goods, including aluminum, copper, and steel are going to drive up costs. This could drive up your budget for repairs and maintenance. If you need a new truck or trailer, expect to pay more. With higher costs, you want to have the highest possible credit rating to ensure you get a low interest rate. Freight factoring is the answer to upcoming fluctuations as the new administration makes its changes.
When you sign up to sell your invoices at a discount, you gain immediate payments. How do your company’s invoicing measures currently work? With most companies, you collect bills of lading over the week or month, generate invoices from the information on them, and mail or fax those invoices to your client.
Your client has time before the invoice is due. If they get 30 days, they don’t have to pay you for a full month. Meanwhile, you’re stuck waiting for payment to arrive. If you’re mailed a check, add the time it takes for the check to be deposited and clear the bank. During that time, you can’t pay bills, and that impacts your credit rating.
Freight factoring ends those delays. Submit your bill of lading, get paid as quickly as that day, and pay your bills on time. You don’t worry about your credit taking a hit with the late payments. It’s also advantageous as timely payments improve your credit rating and help you qualify for low interest rates for purchases like a new truck.
TBS Factoring offers low rates and additional services to help you save money. We can help you find the best truck insurance rates, get fuel discounts of up to 90 cents per gallon, and embrace the convenience of the TBS: Get Paid App. We help you get paid immediately. Contact us today and learn how to get started.