The Refrigerated Trucking Market in the US and Canada to Generate Revenues of Over $15 Billion During the Period 2020 −2025 - Market Research by Arizton

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Mar 19, 2020, 10:00 ET

CHICAGO, March 19, 2020 /PRNewswire/ -- According to Arizton's recent research report, Refrigerated Trucking Market in the US and Canada - Industry Outlook and Forecast 2020-2025 is expected to grow at a CAGR of around 4% during the period 2019−2025.

Key Highlights Offered in the Report:

Many of the FTL service providers revenue from dedicated carriage service increased by an average of 7% in the year 2019 as compared to 2018. Nearly 1/4^th of the fleet of large vendors are kept aside for dedicated carriage service, and the numbers are growing YOY.
Refrigerated transportation by railways is one the major threat to the market of refrigerated trucking. This is more so during the period of capacity constraints, driver shortage, and freight rate increase.
The industry although characterized by a large pool of vendors, the demand is higher than capacity, owing largely to driver shortage. This has led to many of the shippers availing dedicated carriage service which safeguards against fuel surcharge, and annual tariff increase.
The refrigerated trucking rates are expected to increase by over 6% in 2020 (the freight rates increased by 5% in 2019 as compared to 2018).
The trucker-tractors have an average life of around 8 years or in terms of miles covered, around 700 thousand miles. The procurement of refrigerated trailers or a truck-tractor is as a new equipment, or on a leased basis, and in some case on a rental basis. The leasing of trailers is adopted as a major procurement method as the profit margins are currently low.

Key Offerings:

Market Size & Forecast by Revenue | 2019−2025
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by service, temperature compartment, end-users, vehicle, and geography
Competitive Landscape – Detail overview of 34 key vendor profiles

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Refrigerated Trucking Market in the US and Canada – Segmentation

Capacity constraints on certain lanes are expected to increase rates in the full truckload (FTL) sector. The rate increase is expected to be more in FTL than LTL on account of long routers covered and the high usage of diesel.
The demand for multi-temperature refrigerated trucking service has high adoption in the F&B industry. The major growth enabler is due to the growth in online food and fresh produce delivery services. The increase in usage of a multi-temperature refrigeration system has given rise to operational efficiency.
The food & beverage industry dominates the reefer truck market. The logistics cost in the food industry accounts for 7−10% of the total product cost. The increasing number of quick-service restaurants and retail outlets has fueled food consumption, which has increased the demand for chilled and frozen food and beverages.

Market Segmentation by Service

Market Segmentation by Temperature Compartment

Single
Multiple

Market Segmentation by End-users

Food

Poultry, Meat, and Seafood
Dairy and Beverages
Bakery, Confectionery, and Others

Pharmaceutical
Others

Refrigerated Trucking Market in the US and Canada – Dynamics

Increasing vehicle population and global warming creates a serious threat to sustain human life on earth. Refrigerated trucks play a major role in day-to-day life needs of every individuals in the United States and Canada. Refrigerated trucks haul goods from manufacturers to retailers, delivering packages even at the doorstep of the customers depending on the customer needs. These refrigerated trucks affect the public health and significantly induce global warming. There is a compulsion in refrigerated trucking sector to show up their social responsibility and switch refrigerated truck to alternative energy sources to power its reefers. This can also contribute to cutting costs in operation wherein, the refrigerated trucking companies can reduce their operating expenses being spent to maintain optimum temperature of the goods all throughout the hauling span. Thus, propelling the introduction of solar-powered refrigerated trucks in the market.

Key Drivers and Trends fueling Market Growth:

Growing Organic Food Market
Increasing Multi-Temperature Trucking
Growing Consumption of Perishable Goods
Growing Need for Pharmaceutical Shipping

Refrigerated Trucking Market in the US and Canada – Geography

Chilled or perishable food items have multiple challenges in transportation; therefore, cold chain management is increasing its complexity significantly. Due to technical advancements, refrigerated trucks that can hold goods with multiple segments at different temperatures are gaining popularity in recent years in North America. Multi segmented refrigerated trucks can maintain different optimum temperature levels. Multiple temperature trucks are more particularly used for the retail application, where temperature-controlled models are required to replenish store stock with relatively small quantities from regional distribution centers. Apart from producing and manufacturing food products, the food and beverages industry have also contributed to the growth of the U.S exports with the expanded sales in the international market of nearly $133 billion. To export the food products to the nearby states of the United States and to export to the other countries there is a necessity to have a well-equipped transportation system. Because most of the exports include the frozen foods, dairy products and beverages.

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Market Segmentation by Geography

North America

US
Canada

Major Vendors

H. Robinson Worldwide
Americold Logistics
B Hunt
Knight-Swift Transportation
FedEx
DB Schenker
U.S Xpress
DHL
Lineage Logistics
ABF Freight
Marten
KLLM Logistics
Prime Inc
Covenant Transportation Services
Stevens Transport
Burris Logistics
Total Quality Logistics
Henningsen Cold Storage
Expeditors
XPO Logistics
Trenton Cold Storage
RLS Logistics
Matson Logistics
Conestoga Cold Storage
Agro Merchants Group
Congebec Logistics
Hanson Logistics
Confederation Freezers
Ruan Transport
Penske
Atlanta Bonded Warehouse Corporation
Alliance Shippers
Midwest Refrigerated Services
Estes

Explore our logistics & packaging profile to know more about the industry.

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About Arizton:

Arizton – Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

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SOURCE Arizton Advisory & Intelligence