Want to know why car shipping cost goes up and down throughout the year? Well, that’s because the demand and supply keep fluctuating. Learn more about them below and their connection with auto transport cost:
When Do Supply & Demand Go Up or Down?
The supply and demand for the car transport business are interconnected, so when one goes up or down, the other follows inversely. For instance, if the supply increases, the demand can go down because of more players in the market. But when the demand increases, supply can go down because most service providers, especially the good ones, get booked.
Now there are various reasons that affect the supply and demand for car transport, but the main ones are the two given below:
Time of the Year:
This is a big one because the demand and supply keep fluctuation throughout the year. The demand is high, and supply is limited at the start and during the summers. It is high before summers because many people are returning to their homes after spending holidays with their families, so they get car shipping service for convenience.
Next, the demand increases again during the summer season, right when vacations start. Many people like to travel to different cities or states and but don’t want to drive their vehicles all the way. So they opt for auto transport service. Furthermore, people like to move houses during vacations when their children don’t have schools, or they are not going to the office.
The supply after summer vacations increases, and demand goes down because people have just returned from vacations, and schools and offices start opening up again, so they get busy in life. This is when the demand is at an all-time low and supply is at an all-time high.
Weather Conditions:
Another reason why the demand and supply would fluctuate is because of the harsh weather conditions that deter carriers from hitting the road. For instance, if it’s raining cats and dogs, the roads’ visibility gets very low, and they become slippery as well.
This can be very dangerous if the carrier is not experienced, as a small mistake can result in the loss of hundreds of thousands of dollars. So because of this, many carriers decline car shipping service resulting in a reduction in supply.
How Do Supply & Demand Fluctuations Affect Car Shipping Cost?
The supply and demand fluctuations affect car shipping costs in two different ways; it either increases or decreases.
Cost to Ship a Car Increase If:
If the supply remains the same, but the demand increases like that in summer vacations, the cost to ship a car increases as well. Similarly, if the demand stays the same but supply decreases, like during harsh weather conditions, the price increases then as well.
Cost to Ship a Car Decrease If:
If the demand for car transport service decreases but the supply remains the same, then you can expect a lower car shipping quote. This usually happens in autumn when people are not using auto transport service, so the industry is slow and more carrier are available to get your car across.
Parting Words:
It doesn’t matter if the car transport supply and demand increase or decrease; there is not a very big difference in prices; it may be a few hundred bucks in a high demand season like summer vacations. We suggest talking to your car shipping company and booking a slot in advance to ensure you are not charged more than what the current average is.
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