Facts about How Diesel Price Spikes Affect cars Shipping

I read an article last weekend (in one of my trade industry magazines) about how the inflationary cost effect of rising diesel fuel prices has been trickling into the customer costs of shipping an automobile. It was interesting to read, as lately I have been hearing a particular horror story over and over again from customers who were previously quoted ridiculous prices from other shippers, only to have their car sit until they upped their contract payment substantially.

Sounds like some shippers are not paying attention to gas commodity price fluctuations. Some shippers will promise anything to get your business. As soon as you make a credit card deposit you are largely in their hands. Promising prices that do not factor in the rapid rise of diesel prices and then holding a customer’s car or contract hostage until they pay more is not a good way to do business; and it reflects badly on reputable shippers.

Remember, many auto shippers charge a deposit on your credit card before securing truck space. Do your homework.

Exactly what does this mean? It means that some shippers are knowingly making promises that they cannot deliver on. And what if you don’t pay the contract increase? That’s easy – your car will wait substantially longer to be picked up than you were initially promised. It sounds like a ransom ploy doesn’t it?

At the end of the day the people who pick up your car and transport it, truckers, are only interested in vehicles that have current fuel costs factored into the price of shipping. That means if diesel prices go up, car shipping prices go up. Conversely, if diesel prices recede, so too will shipping costs. As of 5/14/08, the average price of diesel per gallon reached $4.33. That’s up over 58% or $1.55 cents from last year. A 58% increase in diesel prices for the auto shipping business spells an increase in car shipping costs.

Everyone should shop for a good price, but in doing so please be aware of fluctuating gas prices, sneaky sales reps and their effect on an affordable, timely and safe delivery of your vehicle. Below are some fast facts to consider:

• All Car Shipping Quotes have a shelf life. If you get a quote, but are not ready to pull the trigger, make sure that when you are ready the quote is still valid. As you probably know, gas prices fluctuate from week to week. This has an immediate impact on contract quotes.
• You got an amazing quote that no other shipper can come close to? Chances are it is suspect. Most auto shippers charge you a deposit on your credit card and then try to secure transport space. Your car will sit for weeks and possibly even months before someone is even interested in picking it up. Make sure you research who you are dealing with. Check their background. Are they Better Business Bureau affiliated? Are they bonded? Review their terms and conditions.
• What if I live off the beaten path, or somewhere remote? Truckers like to pick up vehicles close to their preferred route. If they have to venture far from America’s main highways and byways, chances are they are going to demand a higher price to recoup the fuel costs associated with driving to your location.
• Auto shipping in winter? Just a note that nationally there are less truckers on the road than at any other time of the year. Winter for many truckers equals bad weather. That means the truckers who are driving cherry-pick the most lucrative shipping contracts available.
• When to ship? The busiest time to ship is in summer. Summer also means more truckers are operating. More truckers mean more competition for pickups, and therefore competition may put downward pressure on prices. However, if diesel prices keep increasing summer pricing may continue to increase.
• How long is my quote good for? That too depends on diesel prices. Because of weekly rising diesel prices, the sooner you act on your quote, the more likely you are to lock in your quoted price.
• What are Trucker Ratings? Reputable auto shippers only dispatch to reputable truckers. The last thing a good shipper wants is a trucker with a bad driving record, faulty rig, or just a poor attitude when picking up your vehicle. Good shippers want you to get your car shipped quickly, at an affordable price, and with the highest amount of customer service possible.

Whether you are driving for business or pleasure – or even when shipping your car, gas and diesel price increases have become an aggravating expense in everyday life. Please remember that finding the cheapest car shipper does not equate to purchasing reputable service. Reputable shippers understand that certain competitors lowball prices to get a shipping contract, but they also know that these vehicles are unlikely to ever move. The smart consumer is the aware consumer, so get into the details and ask all the right questions to ensure that you are not one of the many consumers being let down.