Car Hauler Industry Tips, Industry, News

Top 5 Insights from AHAA’s Fall Expo 2023

by Patrick McCaughey

Hello, everyone! This is Patrick McCaughey, and guess where I’ve just been? The Auto Haulers Association of America Fall Expo 2023! I know, exciting, right? Let’s get into it. Here are the top 5 topics that caught our attention:

Double Brokering and Scams

Trust is a major issue within the industry. Double brokering being at the top of the list at the conference this year.

Double brokering presents a serious risk in the auto transport industry. As discussed in multiple panels, when this practice occurs, carriers often get paid less and the customer ends up paying more without knowing why. Additionally, this practice can result in reduced accountability, as it becomes unclear who is responsible for the vehicle. In a worst-case scenario, cars can be lost or damaged with no clear avenue for resolution. Carriers feel the brunt of this scam and are pointing out this lack of transparency and underline the importance of eradicating double brokering in the industry.

Scammers are another alarming issue plaguing the auto transport industry. These scams often involve brokers who demand up front fees, fail to deliver services, or disappear after payment. The lack of regulation and transparency in the sector only facilitates such fraudulent activities, leaving customers vulnerable and leading to increased mistrust in auto transport services.

The Driver App Overload Issue

Despite the intention to streamline processes, the growing number of required apps is overwhelming carriers. Many drivers, especially older and less tech savvy ones, are finding it challenging to adapt to new and different technology on such a consistent basis. Other drivers simply feel that when each new shipper or broker requires a driver to use a different app, it becomes challenging to keep track of the various apps for different customers. Ultimately, this defeats the purpose of what a driver app is supposed to do – simplify transport for carriers and drivers.

The industry needs a solution that genuinely streamlines transport for all auto transport moves, as originally intended.

The Driver Shortage Conundrum

Now let’s talk about the people in the driver’s seat. There’s a driver shortage, and it’s hitting the car hauling industry hard. Hiring is proving difficult in the car hauling industry.

Companies are looking for drivers with at least two years of car hauling experience, creating a tough barrier for newcomers. This hurdle exists even for seasoned drivers new to car hauling.

With an aging workforce and high turnover rates, there is a growing need to attract and retain younger drivers. The driver shortage issue in the auto transport industry has reached a critical point, compelling companies to rethink their hiring strategies. Innovative solutions such as comprehensive training programs for newcomers and incentives for seasoned drivers to switch to auto transport are necessary to alleviate this pressing problem.

To address this issue, companies are offering competitive compensation packages and implementing creative recruitment strategies. The industry will need to find a balance to ensure a consistent talent pool.

The Future of EV in Auto Transport

As EV prices decrease, we expect a surge in interest. However, it’s clear that we’re not there yet, especially when it comes to fleets. The overlap between car haulers and consumer preferences for EVs is still minimal. The lack of accessible charging stations further complicates the situation.From a logistical perspective, the current charging infrastructure poses significant challenges for EVs in auto transport. The time taken to charge EV haulers, combined with the scarcity of charging stations, could impact delivery schedules and efficiency, hindering the wide adoption of EVs in this industry. Interesting times lie ahead!

Insurance Vetting Car Haulers – More Than Just Paperwork

Insurance companies are looking beyond basic documents when vetting drivers. Pre-existing driver performance indicators like accident history are receiving more scrutiny. The driver’s profile and credibility are paramount in risk assessment.

Insurance companies are increasingly leveraging data and analytics to gain a comprehensive understanding of a driver’s behavior and performance. They’re not only analyzing accident history but also factors such as adherence to speed limits, frequency of hard braking, and even consistency in maintaining schedules. This more rigorous assessment allows insurers to accurately gauge risk and adjust their policies and premiums accordingly.

While the trucking industry may face challenges in various aspects, it continues to evolve and adapt to meet the demands of modern transportation.

 

From technological advancements to regulatory concerns, each challenge presents an opportunity for growth and improvement. With continued efforts towards safety, efficiency, and innovation, the future of trucking looks promising. So, let us embrace these changes and work towards making the trucking industry even better for all stakeholders involved. Let’s keep on trucking!

Stay tuned for more updates and how Super Dispatch is working on supporting these issues that burden Carriers, Shippers, and Brokers in our industry!

 

Published on October 31, 2023

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