The past two years have been challenging enough. As the world changed at a rapid pace, the transportation industry followed suit. One trend vehicle shippers across the board have found success with is moving their respective units into profitable new remarketing streams. The only issue? Shippers across the United States and Canada have taken note of the strategy employed by the early adapters. Now, there is an increasing demand amongst North American shippers to move units that have reached the end of their lease. With so many vehicle shippers adopting this seemingly smart strategy, it's causing a number of challenges that can only be solved with a reliable logistics partner.
Out of all the hurdles shippers are being forced to clear, capacity issues are the most pressing. American consumers have reinvigorated their appetite for cars, specifically used models. Car prices remain high due to inventory constraints, so more customers who tend to buy new are opening themselves up to the idea of driving a pre-owned. In fact, CNBC recently reported that an estimated 4.5 to 5 million consumers are waiting on the sidelines to make a purchase. The demand is putting pressure on the auto industry to produce more vehicles, which will ultimately help to bring sticker prices down on both new and used models. As the new OEM volume enters the market over the coming months, trucking capacity will dry up quickly, leaving fewer transportation options for shippers to fulfill their respective remarketing strategies.
So, where does that leave us today?
Manufacturers are ramping up new vehicle production efforts. But that isn't much help to vehicle shippers in the interim. The demand for used models is growing in order to fill consumer needs, but there are only so many pre-owned vehicles to go around. This is cause for concern when you consider the following example. Whereas California-based shippers could previously source used cars from within their borders or limit their search to neighboring states like Nevada and Oregon, the lack of available models has shippers sourcing from farther than ever before. Dealerships and car rental agencies still need to fulfill the obligation of adding inventory, and shippers are struggling to provide. For this reason, shippers are looking outside of their own backyards and setting their sights on wherever they can pick up inventory to satisfy the ever-growing demand for used cars.
Vehicle shippers who want to experience the lucrative benefits of moving units freely into strategic remarketing streams need to begin planning now. Those who find success will ultimately need access to a robust carrier network that can provide short lead times, flexibility, and reliable delivery options at a minimum. It sounds like "pie in the sky" optimism to believe that checking off all three boxes is possible, but the solution is much more attainable than a majority of naysayers would care to admit. In fact, shippers will be singing along to Frank Sinatra's "High Hopes" when they realize that all it takes is one call or message to RPM to shift vehicle inventory (not rubber tree plants) from its origin to the desired market that aligns with that shipper's remarketing plan.
Leveraging a carrier network over 40,000 strong, RPM has relationships in place that make it possible to offer same-day shipping with five-to-seven-day transport windows. This provides shippers with the flexibility needed to not only meet current remarketing challenges head-on but set them up for a long-term plan for continued success. The transportation provider also offers touchless delivery, end-to-end supply chain visibility, and access to a tracking portal that is live 24 hours a day, seven days a week. RPM's reach is wide enough to cover any route at true-to-market pricing with complete coverage throughout the continental United States and Canada. Additionally, the transportation provider presents a single dedicated point of contact to every account so you can get in touch with a person with any questions regarding every shipment. These distinct advantages will be a welcome relief as trucking capacity grows more scarce and shipping needs continue to grow in a highly competitive and uncertain marketplace.
For more information on overcoming obstacles within the remarketing sector, email our Director of Remarketing, Shannon LaPointe at firstname.lastname@example.org or visit Transport.RPMmoves.com/Remarketing.