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To address cash flow challenges due to longer payment terms in government contracts, trucking companies can utilize freight factoring services, and for broader business growth, networking within the industry and leveraging financing options are essential strategies. They come in different flavors, accommodating various logistic needs.
On April 22, 2024, the United States Trade Representative (USTR) announced its initiation of a Section 301 investigation into China’s acts, policies and practices in the maritime, logistics, and shipbuilding sectors.
For contracts being developed or negotiated during this period of unusually high inflation, an EPA clause may be an appropriate tool to equitably balance the risk of inflation between the Government and contractor. Defense Logistics Acquisition Directive (“DLAD”) 16.203-2 provides an example of amending a contract to add in an EPA clause.
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