Car shipping companies are affected by soaring gas prices

With the economy in the dumps and no end in sight, gas prices are highly explosive, and the effect is being felt particularly hard by car shipping companies nationwide. With the average price per gallon above $3.50, according to the American Automobile Association (AAA), companies that transport goods of any kind have to move up prices to stay in business.

Not only the car shipping industry has been affected by soaring gas prices, the cost of goods at supermarkets and on store shelves around the world are opening to climb proportionately to the change in oil prices. Car shipping rates are climbing steadily, which can make it difficult for companies to compete, and equally difficult for consumers to pay for auto shipping services.


The difference in shipping prices depends on the size of the car shipping company, and how well they can take up the excess costs. Obviously the smaller companies are mainly affected by this increase in business expenses, and they will be out of business far sooner than large, national corporations. The larger car shipping companies will not increase their prices nearly as much, which will result in fewer profits, but sustained their business operations.

Many auto transporters price their bids months before vehicles are planned to be shipped, so if gas prices rise between those dates, the company can end up losing money on the deal. Many car shipping companies quote low amount in order to get the job and already make little profits, but they are now seeing their profits margin shrink even further.

Luckily, there are many large car shipping companies with a long history of success, even in times of economic unsteadiness.