When it comes to auto transport, understanding the cost per mile can make the difference between a profitable operation and lost opportunities. For carriers, shippers, and brokers – strategy is everything. Knowing where to maximize efficiency and which routes demand premium rates can unlock new levels of profitability.
With data from the Super Moves: State of Auto Transport report, we explore key cost-per-mile trends, hottest routes, and insights to help you refine your pricing strategy. Whether you’re moving cars across regions or tackling long hauls, understanding these numbers can optimize your planning and execution.
What Drives Cost Per Mile?
Transport costs aren’t just about fuel prices. Factors like route length, regional demand, congestion, and even seasonality play a huge role in determining cost per mile. For example, shorter inter-region moves often command higher rates per mile, while long-haul routes across the country tend to be more economical.
High-Cost Routes
Certain short routes, such as San Francisco to Oakland-Berkeley, CA, can reach up to $5.13 per mile. Why? Dense urban areas face significant congestion, require careful coordination, and often include wait times, all of which drive up operational costs.
Economical Long Hauls
By contrast, longer routes like Lakeland, FL, to Greenville, OH, average just $0.40 per mile. The efficiency of running a fully loaded carrier over longer distances without stops contributes to lower costs. These routes reward carriers who strategically maximize their truck’s capacity.
Learning from Cost-per-Mile Trends
Carriers can optimize their profits and streamline operations by taking a closer look at route-specific metrics. Key takeaways include:
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Choose High-Volume Routes Strategically: New York to Miami remains one of the most active and high-grossing routes in the U.S. Understanding the demand along such routes allows carriers to prioritize regions with steady vehicle movement and higher profits.
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Optimize Per-Mile Efficiency with Multi-VIN Loads: Another opportunity lies in bundling shipments. Data shows multi-VIN loads can lower per-mile costs by up to 26% compared to single-vehicle transports. For any carrier looking to improve margins, increasing load size is essential.
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Use Seasonal Trends to Your Advantage: Winter migration drives up transport demand in Florida, while northern states like New York see demand decline. Capitalizing on these seasonal shifts helps carriers plan appropriately and fill trucks based on market needs.
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Adjust Pricing for Shorter Routes: Be strategic when quoting prices for short, high-cost routes. Factor in potential delays, congestion, and downtime. Ensure your rates capture the complexity of these transports while leaving room for profit.
Strategic Load Pricing is Key
For shippers and brokers, understanding cost per mile isn’t just about quoting the lowest cost. It’s about ensuring that your loads move efficiently while meeting carrier expectations.
Using data like regional demand and pricing fluctuations can help you negotiate better terms while maintaining profitability. For example, anticipating spikes during peak months like October or responding to flat pricing in November can allow you to schedule strategically.
Stay Ahead with the Super Moves Report
The Super Moves report breaks down key metrics like cost per mile, top-performing routes, and seasonal trends, providing actionable insights for carriers and shippers. It’s the ultimate guide to understanding the dynamics of route pricing and leveraging them for success. By analyzing these trends, you’ll uncover how to align operations with market realities, reduce costs, and boost efficiency.
Get the complete picture of auto transport trends and strategies. Learn how to optimize costs, price your loads effectively, and stay competitive in a rapidly evolving industry. Don’t miss out on this indispensable resource for your business! Download the State of Auto Transport report here.
