Supply Chain Disruptions and the Auto Transport Industry

Supply-Chain-Disruptions-and-the-Auto-Transport-Industry

In today’s economy, supply chain disruptions have caused inflation in the auto transport industry. According to inflation trends, the debate has been whether it is transitory inflation or long-term inflation.

The recent disruptions in the automobile industry have significantly impacted most auto players and the overall supply chain. These supply chain disruptions affected car buyers, shippers, carriers, FMCs, OEMs, including those operating in the car-hauling space. These operational challenges also push up car shipping costs. Below are the recent impacts of the disruption in supply chains post covid19 and the auto transport industry.

  1. Shortage of Car Parts

Most auto companies have resumed operations fully post covid-19. Although, the global shortage of vital vehicle parts such as semiconductor chips has significantly impacted the auto industry. Modern cars can easily contain about 3,000 chips, but the chip shortage has slowed down vehicle assembly lines worldwide. While most people wonder about the severity of the chip shortage, Tesla’s Elon Musk tweeted last month, “Never seen anything like it”.

The demand for car chips outstrips supply. This constraint in the supply chain has forced some automakers to stall vehicle production. Ford, which is instituting plant shutdowns this month, expects the chip shortage to lower its 2021 earnings by $2.5 billion. Even Toyota, Japan’s top automaker, said on Thursday that it would cut back production at home by 40%, significantly affecting 14 auto assembly plants in the country.

  1. Lack of New Inventory

New vehicle shortages began at the height of the pandemic coupled with the shortage of chips. Due to this, the manufacture of new vehicles is delayed, leading to a deficit of new vehicles post coronavirus pandemic. The lack of new vehicle inventory causes supply chain disruptions and has affected the car transport industry. There is also a backlog of cars due to the pandemic causing the inventory-to-sales ratio to surge.

In recent times, consumer demand for vehicles is at an all-time high. As the economy recovers and demand increases, car dealers are forced to find new, innovative ways to source vehicles for their customers.

  1. Sourcing Of Quality Used Cars

With the lack of new vehicles in the market, fewer new cars are available for retailers to acquire and sell. The lack of a new car supply has led to an increase in the number of dealers, trying to sell used cars to fill that void for those who need to buy cars. Now, dealers have to get creative in their pursuits to source high-quality, used-car inventory.  Retailers are currently going to customers themselves to obtain the inventory they need.

Often retailers have to source inventory from many different locations at much farther distances. So, they employ the services of car shipping companies to pick up customer’s cars and deliver them wherever needed. Consumers continually turn to auction houses and other dealerships to acquire used vehicles. As a result, the need for car carriers to transport the cars to their end destinations increases. However, it is best to ship a vehicle from the major U.S. cities and their suburbs for easier car shipping. Car carriers prefer routes going from one central hub to another than remote locations. 

Supply Chain Disruption Post Covid19

Dealers, carriers and consumers are impacted by the supply chain constraints post covid19. In addition to the rising fuel costs and ongoing truck driver shortage, the result is the strain of exceedingly tight capacities and increased expenses.

Despite these challenges, Metti International is taking additional steps to navigate the challenges and ensure a more stable, resilient supply chain. At Metti International, we offer reliable car shipping services and a smooth transport experience. However, it is best to ship a car from major U.S. cities for easier car shipping. We work with carriers with a 95% or higher service rating, so your car will arrive safely and timely.

Metti International is a licensed and bonded car shipping broker with the Federal Motor Carrier Safety Administration. As a three-time finalist with the Better Business Bureau (BBB), Metti International is rated for providing excellent customer service.

Call Metti International today to schedule your auto transport at (866) 620-1776 and you will get an instant quote. For more information, you can also visit our website at www.mettiintl.com/

 

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Frequently Asked Questions

Most major credit cards, postal money orders and cashiers checks are acceptable forms of payment.

As with most transport services, a deposit is generally required when placing an order. Deposits range from 10-25 % of the total shipping cost. The remaining balance will be due upon delivery.

Most auto transport companies accept cash, certified checks, and postal money orders.

Coast to coast trips usually takes between 10-14 days. Shorter trips ranges from 3-7 days, depending on the actual distance. Some factors may delay a trip, including traffic, weather, and truck breakdowns.

Yes, we request you, or a designated person, be present upon pick up of your vehicle. For your safety and your vehicle’s safety, an inspection is performed and a bill of lading must be signed that serves as proof of delivery.

The easiest way to ship an inoperable vehicle is to let us know when requesting a vehicle transport quote. There will be an additional charge, plus loading and unloading charges to your quote, if we are not informed of the vehicle’s condition prior to quoting.

Auto carriers are not licensed to carry house goods or personal items, these goods and items are not covered by the carriers insurance. Any damage to your vehicle due to household goods shifting or breaking is also not covered. Personal belongings left in the vehicle, are shipped strictly at the owners risk. Carriers will not inventory any belongings left in the vehicle and will assume no responsibility.

Your car is insured for the Blue Book value the entire time it is on the truck. Clearly listed on your Shipping Order, Agreement and Bill of Lading are occurrences not covered. At the time of pick up, a condition report is filled out and signed by both the person turning the car over and the truck driver and you are given a copy.

Upon delivery of your vehicle, this same report is presented. You should compare the condition of the vehicle to the report thoroughly at that time. If you feel damage has occurred to your vehicle during delivery, you must note it on the report before you sign it and the driver leaves. Damage done in transit does not relieve the shipper of paying for transport service performed. Claims will be handled by the vehicle carrier and insurance companies.

Metti International offers door-to-door auto transport service where possible. However, there are instances that we cannot collect/deliver directly to the door due to the size of our auto carrier’s trucks. The size of your street may prohibit direct delivery to your door. Also, some towns and cities do not allow trucks on their residential streets. If the carrier cannot get to your door, he will deliver your vehicle to the next most convenient accessible location, such as the nearest major crossing street, a shopping mall or supermarket.

Please have a no more than 1/4 tank of fuel, remove all personal items from your vehicle and have it washed and cleaned so that the ensuing inspection is easily performed. If it is a convertible, T-top, sunroof, etc. make sure all openings are closed and prepared for changing weather. You can find additional tips on how to prepare your car for transport here.