Auto Transport and Fuel Costs

The price of diesel fuel has been on the rise in the past few months, and these rising fuel costs are contributing to an increase in the costs of auto shipping. And if the trend continues, and there are indications that it may, the cost of auto transport will in turn continue to rise as well.

While there are many factors that determine the price that one pays to ship a vehicle across the country, one of the most volatile yet essential components of pricing is fuel. In fact, diesel fuel is the single most determinant variable in the auto shipping price structure. So when prices shift, drivers and transport companies change their rates accordingly.

But changes made to future and present car shipping jobs do not affect obligations made in the past, and this may present problems for some haulers and transporters. We’ve spoken to a number of drivers on this subject, and there seems to be a collective hand-wringing amongst them when asked about rapidly rising diesel prices. “The problem for us, and this is probably a problem for a lot of guys out there, is that the price of diesel has just gone up by about 30 cents in the past few weeks. We have jobs that we’ve already contracted, and when you’re already operating right on the margin, it can really be a tight squeeze,” said one Miami-based driver.

The most troubling aspect of the rising diesel costs is the timing. Diesel costs usually fall off during the winter months, rising in the spring and plateauing in the mid to late summer. So the winter price hike is both surprising and leads to a dubious sense of what’s to come. If prices continue to trend upwards, then transporters could be facing near record high costs at a time in which demand is already falling off. It may be hard for some haulers to stay profitable when facing the prospect of incomplete hauls and ever-shrinking profit margins.

Consumers of auto transport should heed fluctuations in diesel pricing, as your rate is directly affected by it. If you know that you will be shipping in a few months from present, it might behoove you to make your shipping arrangements sooner than later as to lock in the current rates. Times like these may also lead to desperation amongst transporters, so be sure to properly vet your prospective carrier or broker before finalizing any plans.

Fuel is the commodity that makes all motorized transport possible, and as goes fuel goes, so does auto transport. So be aware of these changes, be reasonable when evaluating quotes, and be smart about selecting an auto transporter!