CARY, N.C. -

When asked what he saw as the big challenges and opportunities ahead for companies like his in the vehicle transportation space, Bill Billiter of MetroGistics said capacity, and finding strong, qualified drivers, will be pivotal for the next two years.

“Because we haul for all the manufacturers, we have a very strict onboarding process,” he said. “Our driver base is constantly monitored and checked through our Safer Ship product, and we use CSA scores to ensure our driver base is the best out there.”

Auto Remarketing reached out to a collection of leaders in the auto transport business this fall to get their thoughts on challenges and opportunities for 2014 as well as insights on what might be driving transport costs, how they provide value and much more.

In the insight he provided, Billiter also touched on some of the key items that are pivotal in driving car-shipping rates. One of those, of course, is fuel costs.
 
They stayed fairly consistent in 2013, Billiter said, and that’s likely something that will continue into 2014 and help keep shipping rates stable.

“There are some key factors that go into rates: seasonality, fuel prices, supply and demand, and running lanes. Diesel fuel has remained pretty level throughout 2013 and is expected to remain the same in 2014,” he said.

“We don’t see any spikes for 2014 unless fuel drastically goes up. Finding providers that maximize load factors and run efficiently will help reduce costs and improve speed to market.”

Elsewhere, Dean Xeros, vice president and general manager, uShip Motors and Relocation, talked about transportation rate trends for 2014, as well.

“As a shipping marketplace, uShip has a relatively unique view into pricing. We’re a lot like the stock market in this way, being able to see the going rate and its fluctuations as conditions change. With tight capacity to remain in affect over the next couple years, we don’t anticipate any sweeping rate changes in 2014, assuming diesel remains steady,” he said.

“What we do see, however, is the opportunity for dealers to actually save more money by using a marketplace to connect directly with vehicle haulers,” Xeros continued. “Going direct reduces broker fees and therefore overall cost of acquisition for dealers. So, put another way, technology can actually help reduce the cost of car shipping for dealers.”

Tracking Trends & More

Next up, Marty Coalson, president of ShipCarsNow, offered some perspective from the vantage point of his company.

As tracking becomes more and more important for car shipping services as many providers are offering ways dealers can track their shipments more efficiently as they travel across country, Auto Remarketing asked about new developments in this area.

“Dealers, remarketers and fleet managers are busy people  —  and between time spent on the lot, out at auctions, or traveling across the country, they are at their desks less and less. ShipCarsNow makes it easy to get an instant quote, place an order, track movement and get ETAs, whether our customer is at a desk or in the field,” said Coalson.

“Our website, www.ShipCarsNow.com, is great for the office and our mobile app is easy to use when you’re everywhere else. And of course customers can always call our 24/7 customer service reps. Offering multiple ways to track shipments — and making all of those easy to do — is important so our customers can do business the way that’s most convenient for them,” he added.

“When vehicles are shipped by rail, their movement is tracked using Automatic Equipment Identification (AEI) — an electronic recognition system that identifies and tracks the movement of rail cars,” Coalson continued. “This is a reliable way to trace the movement of vehicle shipments so those awaiting their arrival know where inventory is and when to expect it.”

Additional Insights

From the perspective of JMN Logistics, chief operating officer Cindy Darnell discussed the challenges and opportunities that are waiting in 2014.

“Similar to 2013, with the economy continuing to gain strength, it will remain a problem matching the rapid growth increase of our customers with available capacity,” she said. “Another factor in addition to the capacity, would be finding qualified drivers.”

Over at uShip, Xeros offered his take on what he sees on the horizon in 2014.

“At uShip, our biggest challenge is also our biggest opportunity, that being to convince dealers of the opportunity that sits outside their comfort zone, that predictable buying and selling radius that can artificially stunt their sales growth,” Xeros said.

“Many factors play into what constitutes that comfort zone, a big one being perceived shipping cost. But with so many potential out-of-area buyers and so much auction opportunity just outside of their comfort zone, it’s an opportunity they really shouldn’t — can’t — ignore,” he continued. “Given the ability to connect with carriers via mobile device, push shipping needs to an existing private network and receive competitive pricing, there’s only upside, especially when it means having more inventory to meet buyer demand.”

 For Ready Auto Transport president Jerry Tassone, innovation is a key area to focus on next year.

“Continuing to be innovative will be critical, particularly as it relates to improving efficiency for our shippers and carrier partners,” Tassone said. “Providing reliable, easy-to-access data and information for vehicle tracking, vehicle condition and customer analytics will continue to be top-of-mind for our shippers and carrier partners, as well as load and route optimization to reduce waste and improve efficiency.”

Along these same lines, Tassone also discussed ways that transport companies are looking to maximize value for dealers, remarketers and auctions.

“Our customers are telling us they need more information and improved efficiency to help them make better business decisions,” Tassone said. “Today, transportation and logistics providers can offer a full suite of services to include centralized billing and collections, reporting, customer specific analytics and carrier compliance for insurance and licensing.”

Importance of Technology

The role of technology to improve processes and efficiencies in the vehicle transport industry cannot be emphasized enough.

Over at United Road, Scott Kolb — director of business development – remarketing — discussed the investment his company has made in this area.

“The investment that we have made in our processes and patented technology has mitigated many of the challenges in optimizing logistics efficiency. Nonetheless, there remain opportunities for us to work with our customers to reduce inefficiency in the transportation/logistics process,” Kolb said.

“For instance, professional drivers waiting to pick up and deliver vehicles at originations and destinations is wasteful and negatively impacts the industry’s overall capacity,” he added.

“The real constraints established by HOS limitations make it more important than ever for customers and their teams to be flexible with hours of delivery and assist in quickening turn around at their facilities,” Kolb continued.

He went on to note: “We communicate with our customers. We know that technology is key, but having a good working relationship that focuses on creative problem solving is critical to our ultimate success. Visibility is the key — where is the car? Our OVISS system allows our customers to see where their vehicles are throughout the entire delivery process. More companies are transacting business longer distances as well and need delivery professionals to meet their needs, and assist in meeting the needs of their customers.

“The increased use of our available technologies to manage and aggregate vehicles for optimized moves creates important economies of scale benefitting the customer. They also benefit from the efficiency built in to the whole integrated system, even if their particular freight makes up only a small piece of it. Increasing density benefits everyone.”

Editor's Note: This story appears in the Dec. 15 print and digital editions of Auto Remarketing as part of our comprehensive special section coverage of the vehicle transportation segment. 
 

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.