A pronounced decline in per-mile car transportation rates continues as the 2024 business year winds to a close. After an expected spike at the beginning of the college year in September, per-mile vehicle shipping prices have dropped by 3.75% to $1.05.
Is this a significant reason for worry for owners/operators relying on long-distance car hauling loads? Or is it more a reflection of lower fuel costs and normal seasonal fluctuations?
Per-Mile Car Transport Prices Sink As Year-Over-Year Mileage Increases
According to current data provided by COX Automotive, the average listed price per mile for auto transport companies in November 2024 was $1.03 -- a 4.6% decline year over year and the fourth consecutive rate decline dating back to 2020.
The average list price per mile dropped by nearly 2% from September and marks the second lowest rate of the 2024 fiscal year.
Somewhat expectedly, the average mileage per vehicle shipment rose in November 2024 concurrent with lower prices per mile. Cross-country car shipping demand spiked the average to 890 miles in November, up nearly 12% (11.8%) year over year. However, it does represent a 3.2% decrease from October (920 miles).
Sinking U.S. Diesel Fuel Prices Offset Per-Mile Rates
For the 7th time in ten months, the average price per gallon for diesel fuel dropped in November 2024. The current average of $3.52 per gallon is by far the lowest in the past 24 months and represents a 12.9% from the year's peak in February ($4.04).
Suppose diesel prices continue to trend down or stabilize at a low level compared to inflation. In that case, periodic drops in per-mile pricing may be counterbalanced by lower overhead costs for truckers.
Costs Per Mile Rise For Extra Large Vehicles In November
After an 11% drop in October, the price per mile to haul an extra large vehicle rose toward the mean with a 7% increase. Most other vehicle types saw little to no change in per-mile pricing:
Extra-large vehicles: +7%
Large vehicles: -1%
Medium vehicles: -1%
Small vehicles: even
What Do Current Vehicle Transportation Trends Mean?
After a slight 1% increase in October, enclosed trailers saw a slight decrease in usage compared to an increase for open car haulers. Many of the added open vehicle shipping orders were shorter-distance moves, leading to a 4% decrease in average mileage per shipment month-to-month.
The current drop in per-mile pricing signals potential value for many car shipping customers, albeit with the likelihood of spiking costs during the holiday season. For truckers, profit opportunities look strong with fuller open car haulers, decreased diesel costs, and trending per-mile rates for extra-large vehicles.
Are you looking to learn more about the vehicle shipping industry? Follow Nexus on YouTube, Instagram, and LinkedIn!
