The Effects Of Supply And Demand On Car Shipping
Supply and demand are the principles that affect every industry, and car transport is no stranger to frequent ups and downs. If you want to know what happens during the highs and lows of supply and demand and what factors cause these ebbs and flows, read this guide till the end – you’ll have a clear idea by the end of it.
What Factors Are Affected?
This is the number 1 factor that changes with the change in demand and supply in the car shipping industry. If the supply increases, the price goes down because there are a lot of competitors in the market offering car transport.
However, when the supply decreases and demand increases, the price goes up because more people need the service but not as many companies are available to facilitate their needs. In that case, those that do offer the service ramp up their rates.
This is something that you will definitely get to see change as the supply and demand changes. If the supply increases, then it means there are a lot of car shipping trailers available to facilitate your needs. You will easily find someone to take your car from point A to B.
However, when the supply decreases and the demand stays the same, there won’t be as many trailers, especially enclosed ones, to take your vehicle to its destination. Depending on the price and availability, you might end up diving the car by yourself.
Again, something that’s often affected by the increase or decrease in the demand or supply of the cars shipping. If the demand is low, car transport companies will have more resources available to facilitate you better. This means your car might arrive at its destination faster than usual.
However, when the demand is high, and supply is limited, you can expect major delays because the companies will already have several orders in the pipeline to deal with.
What Causes Change in Supply and Demand?
Time of Year:
This is where many car transport companies make most of their money because they know which season calls for the high demand and which one is slow. They prepare according to the season so they can rack in the maximum amount of cash. And that’s not a bad thing, they’re there to earn, so they do it depending on the seasonality.
That said, different times of the year have different demand levels. During winters, the demand is high because a lot of people visit their families and friends for holidays and take their cars with them. Plus, the snowbirds move to warmer areas and take their vehicles as well.
Demand stays high from November to January when people are returning from their relatives and snowbirds are also going back. During summers, demand increases again as people leave for vacations and take their vehicles with them. However, in autumn, the demand decreases, and prices also go down because everyone is busy with their school, college, and offices.
Type of Car:
Depending on the car type, you might be affected by the high demand for auto shipping the most. If you own an expensive vehicle that requires enclosed transport, then you may have to wait because enclosed containers are already in low quantity as open containers are used the most.
Depending on how busy a company’s enclosed containers are, you might also have to pay more than the usual cost of enclosed auto transport.