Transportation Equipment Network (TEN) has completed a sale-leaseback agreement with Shabad Transport Inc. covering 92 dry van trailers, in a move it says reflects carriers’ increasing desire to free up capital while keeping equipment in service.
The deal allows the cross-border carrier to convert owned trailer assets into working capital while continuing to operate the equipment under a long-term lease.
Industry observers say such arrangements are gaining traction as fleets contend with higher borrowing costs and economic uncertainty, prompting some to rethink traditional asset ownership models.
Shabad Transport, which operates in Canada and the U.S., serving sectors including automotive and manufacturing, plans to reinvest the freed-up capital into facilities and expansion, including yard development and shop upgrades.
The agreement builds on an existing relationship between the two companies dating back more than a decade.
“In this environment, access to capital and flexibility matter more than ever, and we worked closely with the Shabad Transport team to build a solution that puts capital back in their hands and positions them for the road ahead,” said Hooman Yazhari, CEO of TEN. “This agreement is a strong example of how we work with customers to align equipment strategy with their broader business goals and help them navigate uncertainty with confidence.”
For TEN, the transaction marks its second major enterprise lease deal this year, following a previously announced $50-million agreement with USA Truck.
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