Understanding Auto Transport - Part 1
Posted on Fri, Nov 12, 2010
Understanding Auto Transport - Part 1
The Auto Transport Industry in many ways is very simple. However, it is important to understand who the players are and then to look at some of the industries key capabilities and limitations. When you understand the industries strengths and weaknesses it will help you make a good choice for your service provider. It will also help you have the right expectations as to what your chosen service provider can accomplish for you.
In this article we'll look at the industry's key players and look at their respective strenghts and weaknesses.
The Auto Transport Industry consists of 3 primary logistics companies types
1.) Carriers
Carriers are auto shipping companies that own and operate trucks and do the physical moving for the industry. Most of these companies are small one or two truck operations with the owner being the driver. Most carriers do not operate on regular routes or schedules. Thus knowing where a trucker will be weeks in advance is virtually impossible. This makes finding a trucker that can accomidate a customers given vehicle, on a given route and at a given schedule can be very challenging. This where the next type of company comes to play.
2.) Brokers
Brokers are car shipping companies that specialize in finding carriers for customers. They work to find a carrier that can accommodate the customers requirements of vehicle type and schedule. Effectively they work to match customers with carriers so that the customer does not have to spend hours and hours attempting to find a reliable carrier on their own.
These companies are service oriented and focus on finding a carrier and making sure that carrier is properly licensed, insured, has a great reputation and that they do a good job moving the customer's vehicle. They act as the customer's agent and will aggressively work to address any problem the customer is having with a carrier.
3.) Broker / Carriers
These companies have both functions under one roof. Sometimes this is good and other times it is bad. A broker carrier will want to move the vehicle on his own truck. Thus he will be biased toward that solution. A full Broker however, will want to find the customer the best alternative with any carrier that is available. This can often result in a better deal for the customer. This is especially true when there is a problem with the shipment.
Conclusion
The Auto Transport industry is very efficient and does a very great service at a very economical price. If you invest a little time understanding the industry you will be able to do a better job choosing a service provider.
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