I have been asked how the slow economy is impacting vehicle transportation
San Diego (PRWEB) October 29, 2008
CentralDispatch® (http://www.CentralDispatch.com), the automotive industry's transportation marketplace, today announced the results of the third quarter vehicle transportation report. Transportation costs were up in the third quarter of 2008 over the second quarter, but declined on a monthly basis from August to September.
Overall, the national average price to ship a standard sized vehicle rose 6% in this time period based on approximately 750,000 shipments posted on CentralDispatch.com. Though transportation costs have risen, the rate of increase continues to decline; the 6% rise between Q2 and Q3 compares to 9.2% between the first quarter and the second quarter of this year.
The cost of moving a vehicle peaked in August before declining 2.4% in September. This is potentially an indication that the worst affects of rising fuel prices have passed for vehicle transportation. The price of diesel fuel decreased from $4.30 in August to $4.02 in September according to the Energy Information Administration. September is also traditionally the beginning of the slow season for auto transport, with carrier prices generally trending downwards after the busy summer season.
"I have been asked how the slow economy is impacting vehicle transportation," commented Joe Steinberger, vice president of product and business development for CentralDispatch. "The number of vehicles listed for transport on CentralDispatch increased by 40% between the third quarter of 2007 and the same period in 2008. So overall it appears the demand for vehicle transportation continues to be strong and growing. I would attribute this trend to dealers increasingly purchasing and shipping used vehicles online. So even though the overall economy is slowing, the vehicles on a dealer's lot are being sourced from farther away."
Looking at specific transport lanes and comparing prices between the second and third quarters of 2008, the price to ship a vehicle from CA to NY rose 8.5%; and from CA to MI, prices actually declined by 4%. From NY to MI prices rose by 11.6%; and from NY to TX prices rose by 19.3%. From MI to CA prices rose by 9.7%; from MI to NY prices rose by 10.5%; and from MI to TX prices were almost flat at a 0.8% increase.
CentralDispatch.com came online in 1999 as a way for vehicle shippers to easily connect with carriers. It has since transformed the auto transport industry, taking if from relying on paper faxes and phones, to utilizing an efficient central database on the Internet. Today, thousands of dealers, transport brokers, auctions, manufacturers, rental car companies, salvage yards and others access CentralDispatch on a daily basis to move vehicles of all types. CentralDispatch has grown into the largest real-time auto transport marketplace. It enables shippers across North America to save time and money when transporting vehicles by providing access to virtually every licensed interstate car carrier in the United States, more than 5,000 carriers.