Auto Transport Industry – Is the industry doomed?
First I would like to give some thoughts and insight into the auto transport industry.
Some of the major problems within the industry are transparent. Unfortunately the end consumer or business never has any knowledge of what actually happens.One of the leading issues is everyone is using a leading auto transport site to book cars to haul. The website ,which I will not disclose, will allow anyone to signup for there service. From licensed auto brokers, carriers,Dealers and anyone that wants to ship a auto. They allow many unscrupulous people to make a bad name for all the true respectful carriers and auto brokers alike.
Under the Federal Law only licensed and insured carriers are allowed to properly haul property. And, only brokers whom have applied and received a broker authority from the FMCSA are allowed to broker autos to properly licensed and insured carriers.
Now you ask why this is so important. The issue is straight forward, there are to many unlicensed people that have access to this industry. That said, we are being stiffed by companies with no license or bond. They are undercutting the lane rates and driving down the rates below what our cost per mile to operate legally.
I can only imagine without better enforcement from the FMCSA what will actually happen to all the good reliable carriers over the next year. Until the Federal Government steps in and cleans this industry up. The real good Brokers/Carries will soon be pushed out of business.
This information is from personal experience being in the auto transport industry. I have personally seen a very large amount of individuals jumping into this industry without any experience or knowledge. I have also witnessed a large amount of them failing because of this main issue.
In close, I will advise to always get the Broker / Carriers MC# and do your research on auto transport at www.safersys.org . Always make sure the companies are properly licensed and insured. Make sure when contracting with a carrier directly that your auto will be picked up and delivered by them.