ShipCarsNow Solves Truck Capacity Shortage

shipcarsnow_7_16_2010-6_07_am.jpg

An increase in North Amer­i­can new car pro­duc­tion for the sec­ond half of 2012, cou­pled with a short­age of trucks and dri­vers, could soon make it dif­fi­cult for used car deal­ers to find avail­able truck­ing capac­i­ty. As deal­ers expand their trad­ing zones for pre-owned cars nation­wide, reduced truck capac­i­ty could also trans­late to high­er ship­ping costs and longer trans­port times. Using Ship­CarsNow to coor­di­nate auto trans­port by rail is an easy and afford­able alter­na­tive when deal­ers need to ship cars more than 500 miles.

Poten­tial Capac­i­ty Short­age

To han­dle boom­ing new car pro­duc­tion in 2000–2005, car­ri­ers expand­ed truck and rail­car fleets and hired more dri­vers. When new car pro­duc­tion essen­tial­ly halt­ed in 2009–2010, those same car­ri­ers had to down­size to stay in busi­ness. On the pos­i­tive side, used car ship­pers ben­e­fit­ed from the freed-up capac­i­ty and extreme­ly com­pet­i­tive truck prices.

Today, as the trans­porta­tion pipeline begins to fill back up with new cars, car haulers are scram­bling to ramp back up to meet pro­duc­tion demands. At the same time, a truck dri­ver short­age and tight cred­it for new equip­ment are con­strain­ing their abil­i­ty to respond quick­ly. This could cause a tem­po­rary deficit in used car ship­ping capac­i­ty and dri­ve truck prices high­er.

How Mul­ti­modal Rail Can Low­er Trans­port Costs

Mul­ti­modal rail trans­port is a smart alter­na­tive for deal­ers faced with truck capac­i­ty short­ages and ris­ing prices. While deal­ers may only see the final truck deliv­ery, over 70% of new cars in the U.S. move to mar­ket by rail. It is a safe and effi­cient way to ship cars, and pro­vides sig­nif­i­cant price advan­tages over direct truck trans­port.

As part of Union Pacif­ic, Ship­CarsNow pro­vides any size deal­er­ship the ben­e­fits of mul­ti­modal rail and truck ship­ping plus direct truck trans­port for time-sen­si­tive moves. Deal­ers can ship one or two vehi­cles by rail, through co-load­ing ini­tia­tives with new and remar­ket­ed vehi­cles where the vol­umes are avail­able.

When new car pro­duc­tion eats up truck capac­i­ty, rail auto trans­port is an afford­able alter­na­tive for ship­ping cars across the coun­try. With the option to use cost-effi­cient rail trans­port, truck capac­i­ty issues won’t lim­it a dealer’s prof­itabil­i­ty or capac­i­ty to main­tain the opti­mal inven­to­ry to meet their cus­tomers’ needs.

Every year, Ship­CarsNow, and their par­ent com­pa­ny, Union Pacif­ic, trans­port more than 4,000,000 cars around the coun­try, 99.7% dam­age-free. For more infor­ma­tion vis­it www.shipcarsnow.com.

 

Tags:


0 Comments

    Leave a Reply

    Your email address will not be published. Required field are marked *.




    progressive.ua