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Before they ever take
their owner for his first ride or go on
display in the dealer's showroom, new cars
have already done a good bit of traveling.
And while it may not show on the odometer,
the trip from factory to dealership can be a
lucrative one for those firms that
specialize in automobile transport.
With the continuing
popularity of foreign imports, the auto
distribution business involves ocean, rail
and highway carriers. It's a hotly
competitive industry.
As imports have
increased, competing ports have gotten
overcrowded, causing unhappy manufacturers
to consider moving. Consumers have little
recourse when things go wrong because the
industry largely falls between the
regulatory cracks.
The Federal Highway
Administration licenses auto transporters
and requires them to carry at least $
750,000 of insurance covering car carriers,
but no regulations govern delivery delays or
damage.
For those who are
moving their automobiles from one location
to another, consumer experts and industry
insiders warn customers to choose companies
with care and to read contracts closely.
There are more than
1,000 companies nationwide call themselves
auto transporters, but many are brokers that
farm out the actual hauling to smaller
contractors. This system makes delivery
dates hard to predict. The person may have
eight or nine pickups, so to know exactly
when the car will be at the location is
almost impossible.
Customers who go
through brokers might find themselves
chasing strangers to collect on damage
claims, since the hauler, not the broker,
bears responsibility for damage. The key is
to take the time to read the contract. You
can save yourself a lot of grief by taking
time up front.
Whether domestic,
import or export, auto distribution is big
business and keenly competitive. And whether
port terminals, sea, rail or road carriers,
more players are contending for a piece of
the action. |