Two ports and one bay
The Port of Los Angeles and the Port of Long Beach sit next to each other in San Pedro Bay. Wikipedia says the Port of Los Angeles is the busiest port in the United States by container volume, and that the two neighbors combined rank among the busiest worldwide. Intermodal rail cars from both go north to Los Angeles via the Alameda Corridor.
Drayage is the short-haul trucking that moves containers between terminals, rail yards and nearby warehouses. This page describes the cash reality of that work. It is not a statement that any trucking operation will be approved, since each application is evaluated on its own bank statements.
Why a drayage truck earns less than its calendar suggests
A truck can be on the clock all day and still complete fewer trips than planned because of waiting at terminals, appointment windows and traffic. The owner pays the driver for time, pays for fuel while the engine is idling and continues to pay insurance and the truck note whether the truck moves or not. Meanwhile the customer pays on its own invoice terms, which for a small carrier is often the longest part of the cycle.
| Cost | When it hits |
|---|---|
| Driver pay | Weekly, regardless of customer payment |
| Fuel | Daily at the pump |
| Insurance | Monthly or in installments |
| Truck payment or lease | Monthly |
| Repairs and tires | Unpredictable, often urgent |
| Customer invoice | Weeks later |
Compliance as a cash event
The Port of Long Beach article notes that the two ports launched a Clean Trucks Program in 2011 aimed at cutting air pollution from the port truck fleet, and that the port banned older diesel trucks in 2007. The details have surely changed since, so we will not describe current requirements. The cash lesson is general: when rules about the trucks that may serve a port change, an owner can face a large equipment decision on a schedule they did not choose. Check current requirements directly with the ports and the relevant state agencies before buying or leasing a truck.
Habits that keep a small operator solvent
- Track idle time. If waiting costs more than driving, price it into your rates or your customer mix.
- Hold a repair reserve. One roadside failure can cost more than a week of margin.
- Age your receivables. A short list showing who owes you and for how long tells you which customers are quietly costing you money.
- Watch customer concentration. If one shipper represents most of your revenue, its payment delay is your cash crisis.
How working capital relates to this work
For a short-haul operator, working capital could in principle cover a repair, bridge payroll while invoices are outstanding or help with an equipment purchase. Whether a particular business is a fit depends on its bank statements, not on its industry label. We look at about three months of business bank statements. No tax returns are required, the credit pull is soft and a FICO of 500 or above is considered. Sole proprietors can apply. Long-haul trucking is a different cost structure, and nothing here promises funding for any trucking business.
The application takes about five minutes. You will need roughly three months of business bank statements; no tax returns are required, the credit check is a soft pull, and a FICO of 500 or above is considered. Funding runs from $25,000 to $5,000,000 and can arrive in as little as 24 hours once everything is in. Start at the application page.