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How Market Trends are Affecting the Car Shipping Industry Today

How Market Trends are Affecting the Car Shipping Industry Today

Among its many effects, the pandemic created some uncertainty in almost every industry globally. The car shipping industry was one of the affected, but thankfully, it’s now rising, like many industries. If things go well, the global car carrier market may reach $1.06 billion by 2029, as projected.

Still, various emerging market trends are shaping this industry’s future. This is because they could change several things that directly impact customers, such as future car transport prices. It is worth looking into these trends and changes if you plan vehicle transport with a car transporter.

Let’s take a more in-depth look at these trends.

Major Trends Affecting the Auto Transport Industry

Understanding what’s waiting for the auto transport industry helps in planning for the future. As said earlier, the car shipping industry is recovering from the global economic crisis induced by COVID 19. The economy has kept fluctuating and technology advancing, leading to specific industry trends.

The trends in the car shipping industry include;

  1. Capacity crunch
  2. Electronic logging devices mandate
  3. Environmental initiatives
  4. Freight technology disruptors

You might be wondering if these trends matter to you. Well, they do. The fact that you may not need to hire an auto transport company today doesn’t mean you won’t need their service in your entire lifetime. Thus, you should know what this industry could look like in the future when you need it.

A Deeper Look at the Car Transport Industry Trends

How will the market trends in the car shipping industry impact its future? In this section, you’ll get a better understanding of the four main trends listed above. You will also know the present and projected future impact of these trends on the car shipping industry. Read on to find out more about these trends.

1. Capacity Crunch

car industry

The capacity crunch is a term used by auto shippers when referring to the shortage of trucks. It is a growing trend in the industry due to various reasons. As mentioned earlier, the economy is just getting on its feet, and not many young people are choosing trucking as a career. Therefore, this is causing a shortage of drivers.

This shortage hasn’t gotten to a critical level, although it is becoming more pronounced. One thing that could elevate it is the fact that driverless trucks could be on the road soon. Capacity crunch could make finding automobile shipping services in the future daunting, especially when there’ll be a high demand for car shippers.

People are now starting to understand the benefits of automobile shipping so the demand is getting higher. They can now appreciate that it saves them time, resources, and energy. They even have the convenience of having the cars shipped right to their doors. But the manpower to make this a reality is starting to slowly diminish.

However, this will mean good for auto transport brokers. Brokers in the industry play an important role in making automobile shipping efficient. They help customers find reliable and trustworthy auto transport companies effortlessly, even with the increasing capacity crunch.

Portals such as Karrycar and many others make auto transport in Europe efficient. You are only a few clicks away from finding a reliable car shipper when using such services. They gather companies that offer quality services at the most competitive prices.

In short, car shipping brokers help companies connect with potential customers. Working with brokers is a digital marketing strategy for car shipping companies. Brokers have online portals complete with marketing content, reviews, etc., to help build trust with customers.

2. Electronic Logging Devices Mandate

The electronic logging devices mandate has had a massive impact on the car shipping industry. The US federal government passed this law to mitigate fatigue-related road accidents. It requires commercial shippers to fit their trucks with devices that mainly track and keep driver activity records.

Before the ELD mandate’s full-scale implementation in 2019, truckers could drive an extra 1 or 2 hours daily. Extended driving could lead to fatigue and increase the risk of accidents. However, the positive side of this practice was that goods could arrive faster and customers could incur low transport costs.

You need to pay slightly more in car shipping costs than it was before this law. Besides, the duration one has to wait before your car gets delivered has increased. Therefore, this trend can be a blessing or curse depending on the perspective you look at it, whether as a customer or car shipping investor.

3. Environmental Initiatives

There has been a big push to ensure environmental sustainability over the past few years. Industries that produce harmful emissions have been targets, and transport is no exception. There is proof that emissions from transportation can cause climate changes, air and noise pollution, health risks, etc.

One way to cut emissions from vehicles is by having more clean-running trucks on the road. There could be laws in the future to compel road users, especially, commercial companies to have such vehicles. This will also affect those investors who’ve put their money into the transport of cars.

If you run a car shipping business, the investment needed to change your entire fleet may scare you. This is because bringing low emission trucks on the road would require a greater upfront investment. The good thing is that this pays in the long run, as you’ll pay less for gas and lower your prices.

4. Freight Technology Disruptors

industry trends

Technology disruptors bring several benefits to various industries. They are new pieces of technology that change how people do things wherever they work. The freight industry has seen an increasingly popular trend of new technology coming up and changing operations in this industry.

An excellent example of such tech is tracking apps designed to help customers track their shipments. For instance, you can easily track your car shipment on your phone today, thanks to technology. For shipping companies, such technology has enhanced customer experience and boosted business.

Car shipping businesses have seen increased profits with such technologies. The industry, in general, has lowered car transport prices because of the increased volume of business. For customers, keeping track of car delivery times made it easy to trust car shipping businesses with their cars and repeat business.

Conclusion

As mentioned earlier, these are essential insights for everyone. The car shipping industry is here to stay, and you may, at one point, want to ship a car, request motorcycle transport, or ship scooters. The best thing for you will be talking to and hiring a car shipping expert to help you transport your automobile.

It is vital to embrace the car shipping trends mentioned in this article. Besides, knowing how brokers can help you find European car transporters is also vital. This article has provided all these insights, and you should keep them in mind whether you are a car shipping investor or a customer.

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