You Wan't to Know Vehicle Transportation…

Vehicle transportation is similar to a commodity such as sugar, coffee, etc. And, as a commodity the principal factors driving prices are supply and demand. This doesn’t mean that if there are more people like yourself looking to ship their cars the price will be favorable for you, though this is partly true. There are many other factors to consider, and you should try to ask these types of questions:

1. How many carriers are currently active in shipping automobiles? The truth is there are many CDL licensed drivers that try to strike out on their own, but are unsuccessful within their first week, month, or year. These drivers don’t simply disappear either; not after having gone through the necessary training to become a licensed driver, obtaining operating authority, or making a purchase on a new truck or trailer and spotting the necessary insurance. No, in most cases they either consolidate; lease themselves and their rigs to other carriers, or go to work for a regional or national carrier. For this reason, there are a fluxuating number of trucks along all routes, and with this comes a fluxuation in pricing. Other factors include: seasonal travel, holidays, etc.
2. What is the current cost of road diesel along my planned route? The South is inherently easier on carriers when it comes to fuel prices simply because of the geographical advantage of being close to the oil fields of the Gulf. Conversely, routes along the I-80 and I-5 corridors experience higher fuel prices because of their distance from the same source. Sure, oil is shipped in from around the world, and I’m not suggesting that all trucks running along I-10 through I-40 have it easy or should charge significantly less. However, diesel prices very obviously affect this industry, and what’s more, all oil based products in some way impact carriers cost of doing business.
3. What are the costs associated with trucking, and why does it matter to me? Well, apart from the obvious thought that all costs are passed on to the consumer in some manner or another, it is important for you, the shipper, to recognize that you get what you pay for with carriers. Consider this, if you have your vehicle shipped on a truck that carries an 8-car trailer going from New York to Miami, that carrier already has about $1250 – $1500 tied up in fuel costs. Not only do they have to pay for fuel, but there are also tolls and the unexpected maintenance hold ups that must be addressed immediately otherwise the DOT will be sure to levy hefty fines for unsafe travel… then there’s liability insurance and cargo insurance (cargo – “covers your CAR as they GO down the road”)… throw on top of that the cost of lodging if they don’t have a sleeper cab, food (for we all must eat), and the desired profit of the owner-operator or the wages of the hired driver… on and on and on we could go, but you see where we’re going here. The average 8-car hauler needs to bring in at least 3.50/mile just to make ends meet, $5.00/mile if he wants to earn a decent living. (And, there are carriers moving as few as two cars and as many as ten, so much different overhead expenses and per vehicle charges.)

Keep in mind that all vehicle transportation brokers put their best foot forward when they email or call you for your business. The easiest “red flag” to spot is overselling the best case financial scenario. Saving money is not what brokers are in the business to do, though finding the best deal is a part of the picture; brokers are in the business of getting vehicles moved. And, that being the business and name of the game, your decision in selecting a trustworthy broker is the first and most important step in the entire process.

Ask yourself this, “Will the broker I entrust my vehicle with work to secure transportation for my vehicle with a reputable carrier at a reasonable rate?” If the lowest price is all that you can focus on then ask yourself this “is this price going to secure the best carriers available or the desperate ‘bottom feeders’?”

To be continued…