The car hauling business like so many other markets follows the simple laws of supply and demand. Pricing and gross revenue in the market are directly tied to the number trucks relative to the number of cars that have to be moved from any given point A to point B location.
The southern routes maintain a steady volume of cars throughout the year and for about eight months of the year pricing is good to average. Starting in November prices begin to fall and from December through March The average rate per mile Can can drop 15 to 20%. Why? Supply and demand. When the supply of available trucks rises 15 to 20% on the southern routes in the winter, prices fall. And because there are fewer trucks running up north prices rise.
Yeah but what about weather delays up north you ask? Good question. We don't run where the weather is bad up north in the winter. It's the advantage of working with an experienced dispatch team that keeps its eye on the weather and navigate routes around trouble. Last winter many would agree, was the most brutal winner in the last 20 to 25 years. We had one truck caught for two days in a declared state of emergency in Northwest Ohio.
The ironic part of last winter for that driver was after the weather delay in Ohio he said "keep me down south for the rest of the winter." Three weeks later he was stranded in Alabama on I-10 for two days after a major ice storm while we have trucks in Michigan, Ohio and Pennsylvania running with blue skies and dry pavement. Go figure the luck, some guys just get to have all the fun.
It's a decision every driver needs to consider this time of year, but it's clear drivers staying in the South pay high price to keep warm, while the drivers in the north make a nice return on investment from their coats hats and gloves.