Momentum Transport

Car haulers might wind up having to make more trips to Copart auctions, as Allstate just put its salvage-sale business in their hands. Allstate had been previously working with Insurance Auto Auctions, a subsidiary of #2 car auctioneer KAR Auction Services.

Working with Allstate will give Copart a steady flow of cars Allstate recovered after paying stolen-car claims. Once an insurance company pays a claim on a stolen car, the insurance company has ownership of the car once found; that’s why the hot VW Van that got snagged by US Customs last year after being missing for 35 years was handed over to Allstate, since they had paid the owner on the claim back in the mid-70s. Copart will get to auction off such vehicles, most without as exotic a back-story, in the future under this deal.

That may give Copart a leg up on the other auctioneers like KAR’s Adesa and Mannheim; if dealers are checking out the salvage cars from Allstate, they might be bringing their surplus cars there as well. That may mean that car carriers will be doing a lot more business at Copart than they have in the recent past, especially if other insurance companies follow Allstate’s lead.

KAR is trying to put a positive spin on the loss of the Allstate account, noting that other new accounts offset the loss of Allstate, but this wasn’t good news for the new IPO which came in undersubscribed when it went public late last year.

Sources: http://www.chicagotribune.com/business/ct-…0,6153482.story
http://www.cnn.com/2009/CRIME/11/06/califo…n.vw/index.html

Hummer, the civilian version of the Army’s Humvee personnel-carrier, is now on financial life support. High gas prices and the recent economy downturn shaved car carrier traffic to dealers to a mere trickle, as sales dropped by 85% in 2009.

The near-final straw for Hummer is the collapse of the deal between Hummer owner GM and Chinese car maker Sichuan Tengzhong Heavy Industrial Machines; Tengzhong couldn’t get the Chinese government to sign off on the deal. The Chinese might have had their quota of foreign car company deals, as various government entities helped with the deals to buy the technology rights to the Saab 9-3 and 9-5 as well as all of Volvo to Chinese firms; adding the Hummer to the list might have seen a bit foolhardy.

However, Saab was all but given last rights last month before a deal with Stryker Motors finally came to fruition after forcing the Russian money-men out of the Stryker equation; there might be a transportation company that could come out of the woodwork in the next few days to find Hummer a home. Thus, reports of Hummer’s demise might be somewhat exaggerated.

Hummer would have an uphill struggle to stay afloat; the Army is phasing out the Humvee and the market for big luxury SUVs is limited in a $2.50-$3.00/gallon gas universe, so even though it might be a cool ride, it’s a cool ride that few folks are willing to pony up for these days, which will likely lead the financial experts to nix any Hummer rescue.

Source:http://www.nytimes.com/aponline/2010/02/24…ummer.html?_r=1

Overseas shipping companies and international car shipping firms that need to have freight transported between Belgium and the United States and China and Poland now have another option offered by Panalpina that will allow them to get the freight to destination. Plans call for Panalpina to begin two new less-than-container services on these two routes that will allow overseas shipping companies to begin moving freight. This increase in freight capacity on these two routes is good news for firms that move freight between Belgium and the United States and China and Poland. Panalpina must expect freight volumes on these two routes to increase in the future and thus the increase in freight capacity.

Panalpina will work through long time partner NYK Line to provide weekly guaranteed sailings from Panalpina’s less-than-container ocean hub facility. This facility will allow shipments from Panalpina’s business in Benelux, France and Switzerland to be sent across the ocean to American ports. The ports that the sailings will arrive at include Houston, Dallas, El Paso, Laredo, McAllen, New Orleans and Tulsa. The travel time along the route is expected to be about 18 days for freight being moved, which is pretty good when you consider the distances travelled and slow-travel policy of many shipping lines.

The second route that Panalpina is opening up for freight movements travels between Ningbo, China and Wroclaw, Poland, in about 26 days, and is also in conjunction with the services of NYK Line. This new route will give customers that need to move freight between China and Poland another option and should make the job of moving freight to destination easier.

http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017750561

The Port of Milford Haven in Wales is currently embroiled in a dispute that probably has international car shipping firms that do business in the port thinking about looking for another port to move cars through since the freight workers at the Port of Milford Haven are apparently planning on strike action next week. This news comes after the High Court intervened to put a injunction in place to stop the unions involved in the dispute from carrying out plans for a 48-hour strike action to dispute changes to the pension scheme the workers have in place.

The new plans for strike action next week are definitely in dispute of the unions belief that the democratic process is being interrupted by the intevention of the High Court in the legal ability of the union to go on strike to dispute the changes the company wants to make to the pension scheme of the freight workers involved. There could be something in this, since this isn’t the first time the legal action of a union in the United Kingdom has been blocked.

Still, there are many that think some freight services should be considered essential services in the United Kingdom. This action is a bit radical and probably unnecessary and would change the freight industry of the United Kingdom and maybe take away their competitiveness over time. The possibility does exist for some of the freight services in the ports of the United Kingdom to be considered essential services. Especially considering how important the freight movements through the ports of the United Kingdom are to the health of the country and its people.

In addition, freight services in the ports being considered essential services would certainly change the job of overseas shipping companies and international car shipping firms that do business in the ports of the United Kingdom. The possibility is probably small that they would take such a radical step, but you never know what can happen in the changing freight industry.

http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017750560

Resale value is often a measure of the quality of a car; Car haulers and auto auctioneers will be interested to note that fact and be prepared for a brisk secondary market in the Nano.

The one glitch in the Nano so far is some wiring problems with the steering column, causing a short and a bit of smoke in three cars to date. Given the problems with other makes as of late, three minor issues in a year isn’t a bad start. Also, the car is a bit too small and uncomfortable for some people; as a 6’5” guy, I can relate to not quite fitting into small cars. However, at $4000 a car, people of normal stature might be interested.

Tata will be looking to take the Nano to Europe in the next few years; this early success seems to be a good sign for the car transport market, for we may have another major player in the auto markets later in the 2010s.

http://www.wheelsunplugged.com/ViewNews.aspx?newsid=5755

News reports have the car carrier Asian Glory heading back on course to Saudi Arabia; the Somali pirates who seized the ship have let their captives go after receiving a ransom estimated at $5 million. The Ukrainian and Bulgarian news agencies were quick to note the news, since the Asian Glory crew came mostly from those two countries; the ship is now expected to continue on to move cars towards Jeddah on the Red Sea, its initial destination.

The international community seems ill-equipped to deal with this piracy threat, since there are three separate governments in Somalia; the Asian Glory captors hailed from the Puntland region at the Horn area that is very loosely allied with the internationally recognized government, while other pirates are sailing out of the northern Somaliland area that is seeking independence. Thus, solving the problem would possibly require some sort of blockade of those independent areas or seizing of pirate ports, which may be too aggressive for many countries to undertake both from an international law perspective and from a military perspective, for the pirates might not go down without a fight.

However, if March 8th, 2010 | Tags: Auto Shipping, Auto Transport, car carrier, car haulers, car shipments, Car Shipping, car transport, move cars, Moving cars, vehicle shipping, vehicle transport | Category: Auto Transport News, Car Shipping, car transport | Leave a comment

Car transport hubs are pearls that small and not-so-small ports fight over, especially if they have the spare space near the ports to have the huge parking lots for the cars to be staged in. The Jamaican government was bragging this weekend about getting a regional transshipment hub from San Juan, Puerto Rico; the facility is slated to bring 15-20 thousand cars to the Port of Kingston a year.

The PR release was light on reasons why the car-carrier firm made the move. In some cases, government subsidies could make the difference; if they had to pay for the land in San Juan and Kingston paid for it (or waived the taxes on it), that could encourage a move. Lower docking fees could have helped, as could lower wages; Puerto Rico’s loose American connection as a US commonwealth has helped raise wages there, so Jamaican workers could have helped create lower freight rates by working for twenty-cents on the dollar compared to their San Juan peers, based on relative per-capita GDP.

Fifteen thousand cars might not be that much when a jumbo car carrier can carry 8000 at a time, but for a small economy like Jamaican, typically reliant on mining, sugar cane and tourism, can make a small move towards a more diversified economy. However, it may be that used cars make up some of that movement; Jamaica has a limit on importing cars older than three years, but clunkers might be given a free-trade-zone waiver for the transshipment facility if they are heading on to other countries.

Source:http://www.jis.gov.jm/foreign_affairs/html…HIPMENT_HUB.asp
http://en.wikipedia.org/wiki/Puerto_rico
http://en.wikipedia.org/wiki/Jamaica
http://www.trade.gov/wcm/groups/internet/@…adebarriers.pdf

If things go as hoped for a few of the trust ports of the United Kingdom in a few years customers making use of the services offered by the port could be using services like express auto transport services to help them ship a car through the port faster. This could only happen if the trust ports in question were to apply to the government for the right to go private, which they have yet to do according to all reports. Still things are looking like they might be heading in this direction in the future and according to 57 percent of 342 respondents to a recent survey conducted by IFW, such a move might be beneficial to the port and people of the United Kingdom.

The poll of readers was taken by the IWF after the recent announcement that the Dover Harbour Board had decided to apply to the government to go private. This announcement must have energized the other trust ports of the United Kingdom that have been thinking about making a similar moves themselves. Reports are that a few of the trust ports have been mulling over the possibility of applying to go private and the possible benefits and problems associated with the decision.

This situation is certainly being watched carefully by transportation companies that use the trust ports of the United Kingdom to move freight. The privatisation of the trust ports of the United Kingdom could have lasting and possibly beneficial and problematic effects on the business of firms that use the ports to move freight. They’ll want to add their thoughts to the idea of privatising the trust ports and the possible changes this could have on their business.

The process by which the trust ports of the United Kingdom would be and could be privatised isn’t a quick or uncomplicated process and the battle that’s going to surround this subject is likely to continue for months, maybe years, before we see any real progress or change. The government certainly isn’t going to make any moves without making sure they have dotted every line and looked at every angle of the privatisation and possible effects, before they move forward with a decision.

http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017749655

Overseas shipping companies that need to conduct car transport services in the ports of Finland might want to wait until the present problems with the Finnish dock workers union are finished. It looks like the on-again, off-again Finnish port workers strike might have been turned off temporarily after being called for Friday, at least according to the Finnish port workers union, which says it might go ahead with strike action on March 3, if they don’t see some action on getting the disagreement settled. The dock workers union decided to postpone the strike for a two week period after Finish Labour Minister, Anni Sinnemaki used her powers to have the strike postponed.

The strike is definitely still on if the union doesn’t see some progress, this can only delay the solution to the problems or strike action by the union. Hopefully, this affair doesn’t escalate into a full flown labour dispute, because they can get nasty. When you threaten a persons’ way of life and their ability to make a living, things can become pretty heated, and it doesn’t look like either side in this affair are willing to blink at this time.

It looks like car transport movements in the ports of Finland are going to be a hit and miss scenario for firms that need to transport cars. This is definitely going to be a costly affair for some firms during a time when things are already tight financially, which is going to sting for some more than others. There’s little by standers can do about this situation and firms that need to conduct business using the ports of Finland are definitely on the outside looking in. All they can do is try to find another solution to their business needs, while they wait until this thing plays itself out.

http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017749454

Here’s an interesting piece of news in car hauler hardware. Cottrell has long been the leading car hauler trailer maker, but hasn’t had a major presence in the Northwest. That might be partly due to Portland-based Boydston having an edge in the area. However, Boydston closed up as a hauler-maker last year, shifting its efforts into housing construction.

In Boydston’s absence, Cottrell now has signed up Portland-based TEC Equipment, a truck dealer, as a new Cottrell dealer. The notice on Fleetowner.com noted that TEC still services Boydston trailers, for those well-built units will likely be in people’s fleet for years if not decades to come.

As car transporters use ports in the Northwest to get cars to and from Asia as California ports reach their capacity, having a place in the Northwest to get their hauler fixed is important; for example, Chrysler just started using Grays Harbor, WA as their jumping-off point for Asia and Vancouver is busy planning expansion of its port complex. TEC will also offer service in their other facilities in California and Nevada, further giving Cottrell a national reach in service.

Cottrell may be reaching a dangerous point where they go from being the leading maker of car haulers to the maker of car haulers, dominating their field like Microsoft commands the operating-system (and to a lesser extent, office software) market; that could lead them to get some long looks from the FTC if prices go up due to a large market share and lack of competition.

Source: http://fleetowner.com/management/news/deal…nds-chain-0216/