Posted on 01/27/22

How A Nationwide Driver Shortage Is Affecting Car Shipping Costs

How A Nationwide Driver Shortage Is Affecting Car Shipping Costs

Officials in the industry estimate that there are currently 60,000 vacant positions. Major chains like Amazon and Walmart have managed to weather the problem, but car shipping costs are rising.

Car transport is a huge industry, even though most people don't realize it. It is subject to the same pitfalls that any other freight hauling business. Car haulers must follow the same rules as companies that transport food, household goods, or consumer goods. However, they also have to make a profit.

There are many factors that can influence the cost of shipping cars, but this driver shortage could be the most important.

These are the basics of car shipping costs

Supply and demand have a significant impact on the price of shipping any vehicle. Prices will rise if there is more demand.

The demand for transport is rising as we enter the spring shipping season. Prices have risen on many routes already, especially up and down the east coast as well as on the coast-to-coast routes. This doesn't take into account the driver shortage. It's a very competitive industry since as demand rises, so do prices. Carriers have the option to transport the highest-paying loads first.

These logjams are not uncommon among the popular car transportation hubs. Los Angeles, Dallas, and Miami are the three largest locations for car shipping in the United States. Prices rise as more people move to these areas. There are many other options. It is crucial to compare prices - vehicles often end up at pickup due to low spring or summer quotes.

Trucks typically get paid per mile and can haul up to ten vehicles at once. A shipment that costs $650 won't move if it has 200 cars and the highest-paying loads go for $800 each. Carriers won't accept less than they have to.

Take the driver shortage into consideration

Prices go up when the busy season starts. This is true regardless of how many drivers are involved. Because there are only a few thousand trucks driving at any one time, there will always be more vehicles than carriers can transport. Even without driver shortages, there are always increases.

Things get even more complicated when you consider the driver shortage. Prices will rise because there are fewer trucks on the roads. It is simply supplied and demand.

It's not as though the driver shortage is affecting only the auto transport industry. As mentioned above, fewer trucks for companies such as Amazon and Walmart will also impact consumer prices. It is felt across all industries.

It becomes more difficult to move goods if there are not enough people. It's also more costly.

It's as easy as that.

What is driving the driver shortage? How are companies responding?

The current driver shortage in America is caused by several factors. When adjusted for inflation, truckers make less today than they did in 1980. People are avoiding trucking because of the lower pay. This is combined with a rise in freight demand and high turnover rates (especially since so many boomers are retiring from the industry), and you have a recipe that could lead to a problem.

These issues can be overcome by carrier companies, who offer higher wages, better incentives and make the job more enjoyable.

A driver shortage leads to higher pay. Major fleets are seeing salaries of $80,000/year. It's not just about high pay. To attract new drivers, companies use incentives such as health insurance, paid time off, and a 401(k).

Many companies offer loyalty bonuses to their drivers so they can stay with them. Some companies offer their drivers free tuition to college, following the example of the military recruiting handbook.

Trucker safety is another thing that many people forget about. Long-haul truck drivers work and live in their trucks. There aren't many places where they can sleep or eat outside of truck stops. This can be dangerous, especially for female drivers. The industry is working to increase its numbers. Learn more about the daily worries of truckers.

It's more than just pay. The lack of drivers is due to incentives and how shipping companies treat their drivers.

These are the things you can do to reduce these problems when using car transport services

It is important to get quotes if you are looking to ship a car. Take a look at all options and choose a shipper who offers a reasonable quote. There is a shortage of truck space. You don't want your truck space to be booked with the lowest-priced company.

You should expect to pay top dollar, especially for shipping along major routes in the spring and summer. To ask questions or to learn more about the industry, we recommend calling agents.

You can't compare prices or services unless you are actually driving a truck for a living.

For a free quote on shipping your car, give us a shout. We have the knowledge and experience to help you price your vehicle to move when it is needed. We have a 5-star rating for auto transporters and only work with reliable, reputable carriers. Move Car is a great option.