Another year is over and we would like to thank to our customers that continue to trust us with their vehicle shipping needs. 2011 was the year of recovery for the automotive industry as well as the car shipping industry. Demand for car shipping services rose sharply as new car sales increased and recreational travel resumed to historical levels.

RCG Logistics moved 3,787 cars in 2011 for over $2.5 Million in revenue. The average shipping price for a vehicle was $684. We shipped cars coast-to-coast, locally, regionally and all over United States, for car dealers, businesses and individuals.

Challenges

The number vehicles being shipped in 2011 often overwhelmed the available capacity. In some regions there was simply not enough car carriers to move all of the vehicles. This often led to increased lead times as well as higher prices. The price of diesel, as high $4.46/gallon last summer, Read more →

The State of Connecticut (CT) is raising its diesel tax rate by almost 7 cents to $0.462 for every gallon of diesel, highest diesel tax in the northeastern United States. The latest revenue generating measure is meant to aid the budget shortfall despite the fact that Connecticut already has amongst the highest taxes in the nation.

This price hike will surely affect the shipping, transportation and trucking companies that do business in the State of Connecticut. The tax hike will make it more expensive to ship cars to Connecticut. Truckstops and gas stations that sell diesel stand to loose business as more of their customers will choose to fill up in the neighboring states.  While the state is likely gain additional revenue because motor carriers and car haulers that operate in the state file quarterly fuel tax reports under IFTA, the overall effect on the local economy may be detrimental.

Source: Norwich Bulletin

During the first week of the 2011 New Year, the average price of gas was $0.41 higher than it was last year. The average price of diesel fuel was $0.53 higher. Consumers will be seeing the numbers at the pump creeping up.  Increases are likely to impact sales and resale values of compact cars and large SUVs.

Increasing diesel prices will mean that the rates for auto transportation will go up as well. As carriers and trucking companies pass on their cost to the end consumer, prices will adjust accordingly. Fuel is by far the biggest expense for trucking companies in US. Read more →