Auto Transport Pricing Remains Static Despite Diesel Drop
Diesel fuel is the main resource used by auto transportation companies to keep their trucks on the road and moving. It’s not surprising and it’s not really news, either – but the fact that diesel prices dropped a half-cent down to $3.85 a gallon, which is good news on the whole, but really it doesn’t mean much for auto transportation companies, or any logistics companies, moving forward. Diesel prices have been dropping over the past few months, with 18 out of the last 23 weeks showing a decline, and an overall drop from $4.021 back in March of this year, and auto transportation companies have noted a slight drop in coast-to-coast prices for auto transportation services, but it’s been gradual at best.
Diesel is the hottest commodity in the car shipping industry because without it the industry doesn’t run. However, the high price tag has led to higher and higher front-end costs for customers, and brokers have been taking the brunt of it. Many of the larger auto transport fleets have started looking into alternative energies to power their trucks, and Walmart – though not in the auto transportation industry – has unveiled a prototype all-electric long-haul truck, which could prompt other truck manufacturers to start looking at alternative energies for their own trucks. Right now, long-haul trucks average anywhere from 5-8 miles per gallon, which is woefully inefficient, though unfortunately there really isn’t much better on the market. AirFlow recently debuted their “bullet truck,” which, the company says, can get up to 13.4 mpg – a huge achievement considering what’s on the road now. The new bullet truck would save transportation companies upwards of $40,000 or more in fuel costs in a single year, which should give you an idea of what auto shippers are looking at every day in fuel costs.
At the end of the day, fuel is the main overhead costs for auto transport companies, and once you understand just how efficient their trucks are you can start to understand why it costs so much money per-mile to ship a vehicle. Diesel prices dropping is great, but a half-cent isn’t a whole lot, and even with dropping prices it doesn’t solve the long-term issues that plague every transportation company. Alternative energies are the future, though, whether it be full-electric, natural gas, or some other fuel we haven’t even seen yet, something is going to change the long-haul trucking industry, likely for the better. Just don’t get your hopes up that it’ll be in this lifetime. If you’re interested in getting an auto transport quote at the standard rates of today, you can fill out our free online quote request form and you’ll get an instant price immediately right on your screen. You can also call us toll-free at 800-930-7417 to speak to one of our live agents.