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The car shipping industry, like many others, experiences various changes every year. Things like the economy, technology, etc., have caused these changes for many years. Recently, Covid-19 also joined this list as one of the agents of the changes witnessed in the car transportation industry.
Many industries have shown positive trends and steady recovery from the impact of the pandemic. The vehicle shipping industry is no exception, as various trends already seem to shape its future. It is vital to know these trends if you have a car shipping business or intend to own one in the future.
This helpful blog post showcases emerging trends in the automotive shipping industry.
Car Shipping During the Pandemic
Without a past, there’s no future. Let’s first understand how the Covid-19 pandemic impacted the auto transport industry. The first impact it had on the industry was bringing about mandatory safety measures. This includes sanitation protocols for products and testing for employees involved in the manufacturing and shipping process. Things like physical distancing, reasonable suspicion in the workplace and many others made auto transportation generally slower.
Some countries also imposed lockdowns and curfews when it became evident that initial measures weren’t enough. Governments barred free movement from state to state and other countries for as long as six months. This caused little to no demand for car shipping, affecting the businesses drastically. If there’s any need to transport vehicles, conforming with the curfew or lockdown rules of the shipping destination also made it difficult to align schedule and ship products quickly.
The local moving industry didn’t get affected severely. It was easier for people looking for local shippers during Covid. Local moving was possible when lockdowns were lifted in different countries. For instance, car movers made it possible to move cars through international and local borders around Europe.
However, international shipping remained practically non-existent for months. Now, most borders are open, and car shipping has resumed. International vehicle shipping is now possible for car movers right now as you’re reading this article.
Four Industry Trends That Will Shape the Future
The car transportation industry is currently on a recovery path from the effects of Covid-19. Trends such as capacity crunch, government regulations, etc., are changing the landscape.
Let’s check them out.
1. Government Regulations
The car shipping process has changed due to increasing government regulations. The electronic logging devices mandate, for instance, has been impactful. With this regulation, truckers must install their vehicles with devices that automatically monitor the driver’s working hours.
This is a measure meant to prevent fatigue from long hours of driving. The end goal is to mitigate road accidents resulting from prolonged driving. But then, the impact of this regulation on car shippers and their customers since it got implemented has been immense.
For example, drivers can no longer exceed the set working hours. This has increased the transit times as motor carriers have to stick to the mandatory resting periods. This could mean that the number of deliveries made in the day can decrease as delivery drivers practice shorter working hours. It also comes with associate costs that trickle down to the customer. This has made car shipping after the pandemic more expensive than before.
2. Technological Advancements
Technology keeps evolving and impacting the world every day. An excellent example of technology that’s affecting the car transport industry is driverless technology. However, these cars are still yet to go mainstream. So, this is not yet something to worry yourself about in 2021.
Tracking apps are an example of technology that’s already trending in this industry. The increasing popularity of tracking apps has improved customer satisfaction. Today, customers can track their shipments from the comfort of their homes. This has also increased business efficiency for car shippers worldwide.
Generally, technology has a positive impact on most industries. The more innovation the vehicle shipping industry will see post-Covid, the better. Technology will streamline the car shipping process and increase efficiency. It will also contribute to positive experiences among car shipping customers.
Other tools like composite overwrapped pressure vessels are also being utilized by shipping companies to transport pressurized gases and fluids safely. This allows manufacturers to ship automotive fluids in lightweight containers instead of heavy and bulky ones.
Overall, various technological advancements made the shipping industry work more efficiently.
3. Declining Shipping Capacity
‘Capacity crunch’ has been a popular term in the automotive shipping industry. It means the decreasing capacity of car shippers to meet the demand for shipping. This trend could go higher post-pandemic due to many reasons. First, the number of people in the industry has dropped over the past few months. Furthermore, new regulations and shipping protocols may influence businesses to limit their production and shipping capacity to prevent income loss.
As discussed earlier, the demand for auto transportation dropped during the pandemic. This made a massive number of companies in the industry shut down. So, as the situation slowly starts to go back to normal, the need for automotive shipping has increased while the number of available car shippers remains low.
This could go on for years unless something happens. For instance, the younger generation needs to be mentored in the freight business. As things stand, few millennials have an interest in this industry. The good news is that the current capacity crunch isn’t critical. Thus, things can change if proper steps are taken. New businesses can enter the industry to ensure there’s enough shipping capacity to meet the demands of the market.
4. The Need to Go Clean and Green
Environmental preservation is a concern in most industries today. This is for industries that produce emissions that could harm humans and other creatures. Car transportation trucks are no exception as they release emissions that pose a significant danger to the environment. So, some shipping companies are trying to practice more environmentally-friendly practices to lessen the harmful effects on the planet.
Car shippers can help prevent this by using cleaner running trucks. These are trucks that burn less fuel and release fewer auto emissions to the environment. The good news is that many vehicle transportation companies are gradually shifting to such trucks.
Other energy-efficient means of transportation like solar or electric-powered vehicles are also available. So, it’s not long until the shipping industry utilizes them in place of traditional trucks to transport their cars.
The need to comply with environmental standards has been stressed enough. You can expect to see more shipping companies overhaul their fleets post-Covid. Besides, the auto shipping transport prices will also drop in the long run. Cleaner running trucks consume less gas meaning lower shipping costs. This means customers will also benefit from this change.
Conclusion
The vehicle shipping industry is evolving at a fast pace. This is especially after facing a difficult Covid-19 period. Various trends have emerged, and the future of the sector is almost predictable. For instance, the increasing government restrictions like the ELD mandate mean higher costs and longer transit times.
Besides, the need to save the environment could also change prices downwards. With cleaner running trucks, the costs of keeping them on the road won’t be high. Technology will be better with more innovations on the way post-Covid. Lastly, capacity crunch won’t be severe if action is taken.
Those are some of the emerging trends in the vehicle transportation industry today. The reality is that you cannot do much to change these trends. The best you can do is prepare for mild price fluctuations in the future. Changes in transit times and the technology used will also be inevitable post-Covid.