Effect of Fuel Costs on Automobile Transportation Expenses

As fuel prices continue to increase around the globe, those looking to ship their car shortly may be concerned about the prospect of higher shipping costs. How serious are these concerns?

Below, we’ll address the most substantial reasons for increasing fuel prices and what these prices might mean for car shipping.

Let’s get started!

Effect of Fuel Costs on Automobile Transportation Expenses

Causes of Higher Fuel Prices

To start, what exactly are the contributing factors to high fuel prices? 

A few primary culprits include oil prices, recent geopolitical strife, and unreliable global supply chains.

Next, we’ll break down each of these variables in more detail.

Global Oil Prices

Firstly, a sharp rise in oil prices has occurred in recent years. According to some estimates, diesel prices have increased a tremendous 76% in the past year. 

As a result of rising crude oil prices, gasoline prices have also soared and currently show no signs of slowing.

International Crises

In addition to higher oil prices, international conflicts such as the Russian invasion of Ukraine and the ongoing spread of coronavirus have negatively impacted the fuel market.  

Due to various factors related to global supply and trade routes, these crises have led to much higher fuel prices. Likewise, as OPEC struggles to catch up to changing supply & demand, fuel costs increase to compensate for the lack of available oil.

Supply Chain Disruption

Finally, the supply chain for the international oil trade has suffered due to recent events, including coronavirus and economic struggles in primary oil-producing countries. 

This disruption in supply has fed the rapid increase in gas prices for transport companies and the individual consumer. The rate at which fuel has become more expensive varies considerably depending on location, so this issue may be more or less severe for different areas.

Why Do Fuel Prices Affect Shipping Costs?

Why Do Fuel Prices Affect Shipping Costs?

Even though we know what’s causing higher global fuel costs, these causes still don’t explain why there’s an impact on shipping prices. What causes higher fuel prices to raise shipping costs?

Three primary variables that cause fuel prices to impact shipping costs are gasoline shortages, higher trucking expenses, and denser port traffic. 

Let’s look at these factors more closely to understand the relationship better.

Gasoline Shortages

With gasoline in shorter supply, prices at the pump are much higher than typical. 

As you might imagine, these higher gas prices lead to a higher bill for shipping companies, who must pass on their expenses to the end consumer by raising the cost of automobile shipping. 

Trucking Costs

Since so much of car shipping occurs via trucking, higher gas prices can financially drain auto transport companies. 

These expenses result in higher shipping costs for those transporting their car.

Port Traffic and Shipping Prices

With the supply chain disruption discussed earlier, shipping ports often face substantial crowding concerns. 

When ports become backed up and overcrowded, shipping companies need help to meet the demand of new clients and decide to raise their pricing models as a necessary result.

Tips for Managing Higher Shipping Costs

Tips for Managing Higher Shipping Costs

So, if you need to ship your car soon, how can you reduce additional shipping costs caused by higher fuel prices?

There are many practical steps you can take to reduce increased shipping prices:

  • Use terminal-to-terminal shipping. While less convenient, dropping your vehicle off at a designated company terminal is cheaper.
  • Schedule for a less busy time of year. Holidays are notorious for higher shipping prices. If you can avoid these busiest seasons, you’ll have a much more manageable bill! 
  • Pick a more affordable shipping method. Enclosed shipping tends to be more expensive than open-air transport. Open shipping is likely the more financially sensible choice if there is no pressing need for one or the other.
  • Check for discounts and special deals. Transport companies frequently offer discounts and special offers that can significantly reduce the total shipping price.
  • Compare shipping prices for different transport companies. Not all companies offer the same rates, so you can save substantial costs by choosing a more affordable company. 

Contact Ship A Car Inc. Today

Final Thoughts

Fuel prices can negatively impact the consumer’s shipping costs due to gas shortages, increased trucking costs, and backed-up shipping ports. However, you can use many tricks and tips to lower your final bill.

For more information and resources on car shipping & transport, check out our other posts or call Ship a Car directly!