Marketplace Update: FedEx Line Haul for Sale
The backbone of any economy is supply and demand; how much of something can the market offer and what are people willing to pay. When it comes to a FedEx line haul for sale, sellers are hoping that inventory is limited and buyers want to have many options. Of course, not everyone can always win and the system ebbs and flows.
Many independent business seekers who are new to FedEx routes, are showing a greater interest in linehaul. This higher demand is likely due to the ISP transition (by May 2020) that FedEx contractors are undergoing, necessitating 5 routes and/or 500 stops to meet a minimum requirement. This new arrangement makes the package and delivery model a bit less obtainable (or desirable) for some potential buyers.
The ISP agreement allows route owners to meet the demands of dynamic market conditions and ever-increasing consumer expectations. However, those looking to invest capital so they can run their own business, might not see the silver lining.
Aspiring independent business owners, who own their own vehicles, can go the linehaul route and not have to meet the stringent ISP demands. There is one caveat: FedEx linehaul for sale generally require a higher capital investment due to more expensive trucks. This limits the ability for some buyers to get into the business because they can’t afford the higher cost of entry or more expensive equipment.
The demand for linehaul runs is also up thanks to higher multiples. In today’s market, owners can likely expect a higher residual value with a linehaul route vs. pick up and delivery (P&D). With fewer linehaul opportunities available around the country, the smaller supply brings up the value.
It is a great time to be in the market for a FedEx linehaul for sale. You can be up and running in time for the 2018 holiday season. Additionally, the recent blip in the U.S. economy has somewhat softened the price of admission.
Whether you are just starting your research to potentially buy a FedEx route or are simply targeting the right business opportunity, there has never been a better time to get started. By today and be ready to tackle the 2018 holiday season which will be here before you know it.
