One of the main things to keep in mind when you are planning a car shipping is the price. There can be multiple reasons for the changes in the shipping quotes, and one of the main contributors for the fuel price fluctuations. But how are car shipping quotes affected by the fuel price hike? We’ll see how fuel prices affect shipping costs and what you can do to be on top of the situation and possibly get some money off.
Understanding How Fuel Prices Affect Car Shipping Costs
Fuel is one of the main items on the list of operating costs for a car transport company. No matter if a shipment is domestic or international, the price of fuel is the main factor in a car shipping total cost. The cost of fuel is not stable as it depends on market conditions, and as a result, shipping companies may change their rates to keep up with these variations.
- The Impact of Fuel Prices on Transport Vehicles
Carrying companies that ship your vehicles use different types of transport vehicles such as open-air and enclosed trailers. These are fuel-consuming vehicles, and the fuel is what gets the cars from one place to another. An increase in the prices of fuel leads to the transporters having to spend more money on their operations. As a result of this, many automobile shipping firms might raise their quotes to take care of the additional fuel costs.
- Fuel Surcharges: The Hidden Costs of Shipping
One of the measures adoption of which companies is a fuel surcharge to mitigate the hike in fuel prices. A fuel surcharge is an extra fee that is put on the basic shipping rate with an aim to offset the increased cost of fuel. Those surcharges can be quite different for each company and also be quite dynamic since they are linked to the fuel price at the very moment of shipment.
Let’s say the fuel price rises and as a result, the shipping companies have to pay more for fuel during the transportation of your goods. Then, the fuel surcharge will be their tool to pass the cost of the increased fuel to you, and in that case, your quote may turn out to be higher than you have expected.
How Do Fuel Price Hikes Affect Car Shipping Quotes?
In events where the prices of fuel increase, the companies that are in charge of shipping may have to revise their pricing structures. The link between fuel prices and shipping quotes is not always direct or easy, although generally it is the case in the following way:
- Short-Term Impact on Pricing
First, the shipping companies are not expected to raise their base rates right away; this means that they may maintain their regular rates. Consequently, fueled by high fuel prices, they may implement a temporary fuel surcharge to account for the higher fuel costs. This may be charged by the mile or as a flat fee depending on the carriers pricing policy.
That is to say that a car shipping company might add a $50-$100 fuel surcharge for each shipment during a period of a sharp rise in fuel prices and this can lead to transportation cost escalation.
- Long-Term Pricing Adjustments
On the other hand, if fuel prices remain high, in the long run, shipping companies will likely decide to increase their base shipping rates. This change may be slow or quick mainly based on how the price for fuel has influenced their overhead costs.
For instance, if the price of fuel is high for several months, it means transport companies will have to increase their prices so that they can continue to make a profit. Consequently, you may witness a steady increase in car shipping rates.
- How Different Types of Transport Are Affected
Moreover, fuel price hikes can impact the various types of transport in a different way.
Open-Air Transport: Open-air transport is the most widespread and cheapest way to ship cars. Therefore, fuel surcharges may be less substantial and hardly noticeable. However, should fuel prices skyrocket, the higher surcharges would be the first indication of the impact in question.
Enclosed Transport: Compared to open-air trailers, there are more costly to operate enclosed trailers since they consume more fuel to carry fewer vehicles thus fuel surcharges for enclosed transport are the highest and especially during the times when fuel prices are going up.
How to Manage the Impact of Fuel Price Hikes on Your Shipping Costs
Even though you cannot control the hikes of fuel prices, certain measures may assist you in lessening their impact on the car shipping fees.
- Book Early to Lock in a Rate
One effective method to guard yourself from unexpected price jumps that result from fuel hikes is to book your car shipment well ahead of time. Booking in advance not only helps you to secure a rate but also gives you the assurance of avoiding any additional charges that usually accompany a surge in fuel prices. The importance of this practice cannot be overemphasized if you are planning your shipment in the middle of the fluctuations of the prices.
- Choose Open-Air Transport When Possible
If the primary goal is to save money, selecting open-air rather than enclosed transport will be the best way to reduce the shipping cost of your car. As open-air carriers are more fuel-efficient compared to enclosed ones, it means that fuel price hikes will have less impact on the case of open-air transportation. Yet, it's crucial to take into consideration the possible consequences, mainly when your car is equipped with extra security against the weather.
- Compare Multiple Quotes
When you are doing vehicle transportation, the first thing you need to do is to get several quotes then compare them. The idea of requesting multiple quotes from different companies helps you to figure out the ones that still have the best rates even with the added fuel surcharges. There are many car shipping quote platforms, such as Car Shipping Instant Quotes, where you can get multiple quotes from different carriers, making it convenient to compare prices and services all at once.
- Look for Promotions or Discounts
There are promotions and discounts that car shipping companies offer which can be a source of assistance in covering the increasing costs due to fuel surcharges. For example, you could come across seasonal discounts or special deals for first-time customers. Be on the lookout for these promos, particularly when the cost of fuel is high, so as to lessen your shipping cost.
- Ask About Fuel Surcharge Policies
Before you actually book, find out about the shipping company's fuel charge policy. Some companies may have a fixed extra charge for fuel that is not influenced by the current prices for fuel, while others may vary their charges by the minute according to the fluctuating prices. You will also be aware more or less how much it is going to cost you depending on the total freight charges if you get to know this information in advance.
Conclusion
The cost of fuel has a huge impact on the prices of car transport. No matter if you are shipping your car to another place in the same country or to a different country, you need to know how raising fuel prices can affect your price. Keeping yourself updated and planning in advance, you will be better able to control your shipping expenses and not get surprised at the time of collection and delivery.
If you want to get a competitive quote, Car Shipping Instant Quotes is the easiest way to compare the prices of different carriers and get a single quote. Go to our website now and begin your car shipping journey with confidence, knowing that you have found the best possible price, even when fuel prices are increasing!
