Gasoline prices are one of the key factors when operating an auto transport business, as they affect both operational costs and customer demand. The ongoing war on Ukraine and sanctions against Russia have caused a global disruption in oil imports, drastically increasing gas costs.
With tensions between Russia and Ukraine escalating further in 2023, more sanctions could be imposed on Russia, meaning that there will be a decrease in Russian oil imports into the world.
As a result, auto transport companies will likely have to adjust their pricing models and pass on some of these costs to consumers to remain profitable, resulting in an overall decrease in demand for these services since people are less likely to use them if they cannot afford them.
This article will discuss how gas prices could affect the auto transport industry in 2023 and the possible solutions for potential customers looking into transporting their cars but worrying about the high prices.
Decreased number of transported vehicles
High gas prices are challenging many businesses in the auto transport industry. With the increased gas prices, auto transport companies will likely find it increasingly difficult to transport cars affordably from one location to another, which would decrease the number of transported vehicles.
As a result, many auto transport companies are now looking for alternative ways of transporting vehicles, such as railroads or cargo ships. Doing this can reduce their overall cost and help them remain competitive in an increasingly expensive market.
Increased rates
With the increasing gas costs, auto transport companies might be forced to increase their rates to stay afloat, significantly impacting the industry as a whole. As a result, auto transport companies are expected to adjust their pricing to remain competitive and continue providing auto shipping services. So, companies need to ensure that their rates are in line with the current market, a necessary tactic if they wish to keep up in the market and continue operating at an affordable rate.
Business loss
For many auto transport companies, gas costs are a major burden when transporting trailers. As these expenses become increasingly cost-prohibitive, some companies might refuse to transport trailers that are not full due to the high cost of gas.
Indeed, it is a difficult decision for many companies, as they must decide whether they will risk losing money by transporting a half-empty trailer or losing business by refusing to do so. By refusing to accept half-filled trailers, these companies ensure they get their money’s worth in terms of gas costs.
Considerations for concerned customers
With gas prices on the rise, many people who need to transport a car are worried about what it will cost them in terms of gas. A few important considerations should be considered when looking for an auto transport company to ensure getting the best deal possible and having the car shipped safely to the new destination.
Choose your auto transport company wisely
When looking for a reliable auto transport company, it is important to consider all factors, such as insurance coverage, pickup and delivery times, and the company’s reputation. Doing so can ensure choosing the right auto transport company with the best possible deal when transporting a car from one state to another.
Book early
Planning ahead is key to securing the best deal on auto transport. Booking the transport early can save money, allowing taking advantage of discounts and other offers only available to those who book in advance. In addition, it helps to avoid the hassle of last-minute planning and ensure that everything is taken care of in advance.
Opt for an open trailer
Open trailers are cost-effective for transporting a car over long distances since they are significantly cheaper than their counterparts and offer many advantages over enclosed trailers. Additionally, open trailers provide better protection against weather elements, meaning that your car is less likely to be damaged during transit, saving money while still ensuring that the vehicle is safely transported.
Be open to different transport dates
Being open to flexible transport dates can result in significant savings on auto transport and make the process much more affordable for everyone involved. Flexible transport dates allow adjusting the date or time of the car’s transportation depending on factors such as road conditions, weather, traffic, and availability of carriers.
This is especially beneficial for those who do not need their cars delivered immediately and can wait out a longer transit period to save money on the entire process.
Summary
The current tensions between Russia and Ukraine will continue to impact the auto transport industry in 2023. With the increase in gas prices, the high operational costs are expected to limit the industry’s services to transport cars quickly and safely across states. Therefore, businesses in the auto transport industry need to prepare for these challenges and take steps toward mitigating the impact on their operations.
Tempus Logix has been providing auto transport services for the last eight years despite various circumstances affecting the market. Although the current situation isn’t that easy, Tempus Logix is always ready to handle auto-shipping requests across the United States.
