Chip shortage effecting car hauling and car sales?

Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by Vick613, Aug 27, 2021.

  1. Vick613

    Vick613 Bobtail Member

    1
    0
    Aug 27, 2021
    0
    How are you guys making out with this chip shortage. New car old car just curious because over here in Philly it seems super slow.
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Midwest Trucker

    Midwest Trucker Road Train Member

    4,374
    13,057
    Aug 31, 2018
    0
    I just had a car delivered from Cleveland to my place. Brand new Ford. The entire car hauler only had 2 cars on it including mine. I gave them the address to my yard but they tried to deliver to my house. The driver said normally they deny private house deliver but his boss said he had to take it. Tells me they are desperate.

    I flip open the Truck Paper and half the listings are car haulers. Must be tough right now. @Banker may be able to give insight tho.
     
  4. VehicleHauler21

    VehicleHauler21 Bobtail Member

    12
    2
    Aug 27, 2021
    0
    I’m looking to get into car hauling as an o/o. This has been a concern of mine, thanks for posting this question!
     
  5. Banker

    Banker Road Train Member

    2,750
    6,420
    Aug 19, 2012
    0
    I feel good enough about this industry that I recently ordered a new $100,000+ trailer and still plan on hauling cars for several more years. Things are definitely different right now, but if you follow the work there is still work. I don’t do home delivery, never have and never will. I also don’t haul from auctions as they are a pain in the rear for the time involved in the load. The dealers who currently get full loads 7 or 8 of the 9 on my rig are already sold when I get to the dealership. One advantage that I can see for me is being leased to a very large auto hauling carrier with contract freight with nearly every new car manufacturer. When one plant shuts down or a railhead gets slow you can usually find work elsewhere. I personally believe the raw material shortage could get worse before it gets better, but it will eventually get back to normal. When it does get back to normal every carrier I am familiar with will be short of drivers.
    The carrier I work with is constantly getting new traffic from locations we haven’t hauled contract freight from in the past. There are also drivers and owner ops in this industry leaving for “greener pastures” in general freight and that loss of drivers helps those of us who have been there and done that and aren’t leaving Carhaul.
     
    Last edited: Aug 28, 2021
    lynchy, GYPSY65, Otr Traveler and 6 others Thank this.
  6. Happily Retired

    Happily Retired Road Train Member

    9,010
    17,526
    Apr 16, 2014
    high plains colorado
    0
    At our local Walmart, the chip section is always the most well stocked,,,what, oh,,,never mind,,I think it's all a scam, btw, chip shortage, my axx.
     
  7. Hammer166

    Hammer166 Crusty Information Officer

    5,569
    17,301
    Aug 18, 2007
    ~8600+' and loving it!
    0
    Boss told me this morning that every Ford ramp except our 4 are currently under spot buy. And the way the pipeline looks, we'll be busting butt over the next few weeks if we're going to avoid that fate.

    Our fleet has shrunk about 20% over the last year, and looking at the driver pool, growing it back will be tough.
     
    Otr Traveler, BigBob410 and Banker Thank this.
  8. ZVar

    ZVar Road Train Member

    9,113
    18,369
    Sep 10, 2010
    Flint, MI
    0
    The difference is, Samsung (and the like) are willing to pay more to be put at the top of the queue. They are also dropping production of high end components to make room for the lower end stuff.
    If auto mfgs weren't so cheap, they too could be at the top of the queue and be less effected by the shortages.
     
    Happily Retired Thanks this.
  9. skallagrime

    skallagrime Road Train Member

    1,638
    3,230
    Apr 10, 2012
    Indiana
    0
    This is not accurate

    Samsung has some of their own chip fab iirc

    As far as "paying to go on top of que" thats primarily what i disagree with, tsmc and the like have contracts booked out a few years in advance, basically what happened was automakers cancelled their slots, then 5 months later couldnt get their original slots back.

    Couple that with high demand for silicon on so many other things, its tough luck for those that cancelled.

    Without the covid disruption, it was already going to be rough 2020-2023 because capacity was already limited, with the disruption, its a nightmare.

    Chip fab takes a lot more time, money and planning than most people realise. you cant just spin a new facility up From scratch in less than about 2 to 3 YEARS
     
    Otr Traveler and VehicleHauler21 Thank this.
  10. Banker

    Banker Road Train Member

    2,750
    6,420
    Aug 19, 2012
    0
    If the carriers can’t get the manufacturers to realize if they want their vehicles delivered it is going to cost more now, they never will. 4 or 5 more good paying years will keep me in the game. The manufacturers who insist on rate cuts or no increases will get no one to haul them including me. Maybe eventually they will realize the drivers who left car haul and are making $100,000 or more doing something easier are not coming back.
     
    Last edited: Aug 28, 2021
  11. Happily Retired

    Happily Retired Road Train Member

    9,010
    17,526
    Apr 16, 2014
    high plains colorado
    0
    My answer to the chip shortage,,who's stupid now, eh? IMG_0094.JPG
     
    lynchy, runningman0661, LBZ and 3 others Thank this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted