Each Fall and Spring brings a seasonal market trend that affects the vehicle shipping industry nationwide.
Millions of people from Canada and northern states flock to warmer climates during what’s called "snowbird season," referring to the months from October to May.
Many of the “snowbirds” who migrate south for the winter have their vehicles transported back and forth every year. They book each direction months in advance, creating a shortage of openings for normal vehicle transports.
Many of the millions of “snowbirds,” or people who ‘migrate’ from Canada and northern states south for the winter, have their vehicles transported back and forth every year.
They book each direction months in advance, creating a shortage of openings for normal dealer or auction transports.
The delays created by this shortage are “relatively small but noticeable,” according to shipping professional Alex Lopez, but he says that it is the temporary price increase that hurts their dealer customers the most as they pay a higher price for conducting normal business.
Simple Economics tells us prices rise when demand exceeds supply. Bloomberg Business (July 24, 2019) reported U.S. Truck Driver Shortage Is On Course to Double in a Decade
A critical shortage of drivers and a record-breaking influx of winter visitors puts vehicle transport companies in a serious bind as demand far exceeds supply.
Transport drivers know how lucrative snowbird routes are right now. Many are abandoning normal routes to make quick money transporting vehicles on the snowbird routes, creating an even bigger strain on everyday shipping routes across the country.
The impact is felt the most with enclosed transport trucks, which comprise only about 5% of total transport vehicles. So few to start with means that losing some, even temporarily, is quite significant.
What does this mean to someone looking to transport a vehicle? Slightly longer wait times for vehicle pick-up and temporarily inflated prices until the snowbirds return back to North and drivers return to their normal shipping routes. Only then can the industry return to stability.
You can always count on Alex Lopez and his team to give you the straight scoop on current trends in the vehicle transport industry. Who you choose really does matter…. Call Team Alex for your transport needs. You’ll be glad you did.