3 Obstacles Giving Vehicle Shippers Trouble This Spring

3 Obstacles Giving Vehicle Shippers Trouble This Spring

The OEM vehicle shipping game has changed this spring. What we have seen is a market that has become less predictable and more volatile for four reasons. Read on to learn what hurdles OEM shippers are facing and how they can address them.

1. Changes In Fuel Cost 

If one thing has made the most dramatic impact on vehicle shipping rates, it's the recent changes to fuel pricing. Unprecedented events like the Russia-Ukraine conflict continue to drive high fuel costs, which has led to fuel's share of each transportation transaction growing as carriers work to minimize the squeeze at the pump. While there is not much you can do to predict the future of the geopolitical climate, there’s hope that these prices will come down eventually. Until then, fuel continues to act as a thorn in the sides of OEM vehicle shippers across the country.

2. Rail Car Shortages

Vehicle shippers are also having trouble finding rail capacity in Q2. Even if they are finding capacity in specific regions, OEMs are running into further issues with embargoes in various regions. With the continued and growing rail network imbalances, over-the-road carriers are facing mounting pressure to support that rail volume and it's only driving further volatility into the over-the-road capacity market. With this increasing demand for over-the-road capacity, you can expect to see carriers rejecting the work and/or prices climbing higher and higher as a result. 

3. Supply Chain Pressures

The market is well on its way to healing from the COVID-19 pandemic. But supply chain pressures continue to be a very real challenge. A recent study from Liberty Street Economics clearly shows that global supply chain pressures remain at an all-time high. With the Global Supply Chain Pressure Index (GSPI) at an all-time high and increasing demand to ship minimal inventory faster than ever before, each vehicle means more than it ever has in a hyper-competitive, inventory-constrained market. Thus, the new normal is highly volatile and disjointed, making the need for OEMs to secure a vehicle logistics provider with a robust network so imperative. 

How RPM Can Overcome These Obstacles

RPM's state-of-the-art technology and ever-expanding carrier network come together as a singular tactful solution for vehicle shippers struggling with these hurdles. Using an automated process dubbed the RPM HUB, this marketplace lets carriers easily find the loads they want to improve efficiency—reducing the number of miles trucks have to deadhead and saving them money at the pump. Fuel costs may remain high, but RPM's technology provides optimal matchups between OEM vehicle shippers and carriers to reduce deadhead miles and drive optimal efficiency. Additionally, the RPM Drive App empowers drivers to scan shipments to get in and out fast to pick up a new load without having to wait around for that next call. RPM also addresses the rail car shortages by relocating customer inventory to markets with better capacity. This action drives costs down and alleviates the stress of region-specific rail embargoes. RPM can increase speed, lift, and maximize trailer utilization. 

If you’re a vehicle shipper struggling to overcome these obstacles, let RPM provide you with the solutions you need.

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