Opinion: Improving Carhaulers’ Productivity

By Robert P. Farrell

Almost a decade ago, the question was: what would Americans be clamoring to drive after the minivan phase. Well, we now know the answer: pickup trucks and sport utility vehicles of all sizes and shapes — in addition to the still-popular minivan.

The conventional automobile now accounts for less than 47% of all motor vehicles produced in North America. As a matter of fact, over a million more pickups, minivans and SUVs were produced in North America in 1999 than automobiles. Many Americans have a desire for bigger vehicles.

These popular vehicles are not only bigger than the traditional automobile, but heavier as well. Automobiles themselves are also getting heavier, with added safety devices such as dual air bags, antilock braking systems, etc. And some new “alternative fuel,” or “green,” vehicles are considerably heavier than their gasoline counterparts, in some instances weighing almost twice as much.

Longer and heavier vehicles have a direct negative effect on the auto transporter industry.The increase in size and weight of the typical vehicle hauled has forced auto transporters to reduce the total number of vehicles transported per truck. Many automobile transporters are going down the highways today partially loaded, with a space on the tractor-trailer that could easily accommodate an additional vehicle if we were able to obtain a 10% weight variance.

By their nature, carhaulers are truly unique and specialized. The commodity that we transport is specific. The length of the haul is limited, be it from port, plant or rail site. We run empty more than 40% of the time, and partially loaded (even after dispatch), when taking into account multiple drops to be made at car dealers nationwide, the majority of the time.

We are also truly intermodal. The railroads still haul in excess of 70% of motor vehicle traffic on the primary move. Carhaulers then pick up the product at the rail site and distribute it to the dealers in that region.

There is no doubt that there have been, and continue to be, service-related problems with the railroads. But that isn’t the entire story.

The rail fleet is basically configured with approximately 60% trilevels (for autos) and 40% bilevels (for pickups, SUVs, etc.). However, sales and production of new vehicles are just about the opposite. There simply are not enough bilevels in the system — thus, longer delays in the distribution channel. Add on top of that the load losses auto carriers are realizing due to the weight situation, and the delays are exacerbated.

It is estimated that the member carriers of the National Automobile Transporters Association are making tens of thousands of additional trips per year — in order to deliver the same amount of product — due to the decrease in load factors that is associated with the weight situation. The increased costs for equipment utilization and productivity associated with the reduced load ratios are huge and only serve to drive up the distribution expense of delivering vehicles.

By allowing auto transporters a 10% weight tolerance on federal bridge formula B, we can decrease our total miles and reduce the number of trucks that are dispatched. This reduction in miles would also generate societal benefits of decreased traffic, congestion, pollution, etc.

At the same time, we can get the product to the consumer in a more effective and efficient manner. With approximately 40% of all new vehicle buyers using the Internet in some way to buy a vehicle last year, auto dealers and manufacturers want to deliver you that new vehicle as soon as possible. You want that new car or truck as quickly as possible and not have to wait weeks or months.

While a weight tolerance for autohaulers will not be the answer in and of itself, it will allow us to do our part to move the most product in a timely, safe and more efficient manner.