When it comes to food grade transport, it goes without saying that certain items need special care throughout the transportation process to avoid premature spoilage so grocery stores and markets can appropriately stock their shelves for consumers to shop from. The same is true for certain non-food categories as well (i.e., pharmaceuticals). It comes as no surprise that there is an increasing demand for temperature-controlled transportation. In fact, the refrigerated trucking market in the United States and Canada is expected to climb upwards at a 4 percent continuous average growth rate (CAGR) by 2025. This is according to the report, “Refrigerated Trucking Market in the US and Canada – Industry Outlook and Forecast 2020-2025.”
In this post, we’ll provide a brief overview of what the study covers and what some of the key growth factors are. Here’s a look:
From Foods to Pharmaceuticals
Aside from food products that risk spoilage if they’re not transported in temperature-controlled environments, pharmaceutical transport is also having a large impact on the rising refrigerated trucking market. Whether you are transporting flu vaccines or insulin for diabetic injections, you must maintain the precise temperature setting at all times. For example, the Centers for Disease Control and Prevention (CDC) states that when storing and transporting H1N1 flu vaccines, these must maintain a temperature of 35 to 46 degrees Fahrenheit. Any deviance in temperature results in a loss of potency and the vaccine becomes ineffective. In many cases, the freezing of a vaccine can be more detrimental than if exposed to heat, leading to a loss in potency or increased sensitivity, ultimately resulting in widespread recalls, health concerns, thousands/millions of dollars’ worth in losses, as well as a hit to your brand name and reputation.
Proper temperature range sustainability is especially important during the distribution process, in which a carrier’s trailer can reach freezing temperatures as low as 14°F in winter conditions.
Pharmaceutical transportation will likely have the biggest impact on the future of the refrigerated trucking industry moving forward, especially as medical research and specimen transportation continues to break new barriers. Still, the food and beverage market remains the main player in the refrigerated trucking market.
Just what are some of the growth factors behind this projected growth? It’s a combination of customer preferences and transportation logistics. While we already talked about pharmaceutical transportation as one of the biggest influencers pertaining to this market, another one of the key cogs driving growth is the organic food market, as more consumers view these products as a healthier alternative to conventional ones. Other influences include an increase in multi-temperature trucking and more freight companies using optimization software to enhance logistics for such products.
Presently, single-temperature trucking tends to dominate the refrigerated trucking industry; however multi-temperature trucking is becoming increasingly popular as it pertains to delivering different types of products on the same truck.
While growth in refrigerated trucking is largely on the upswing, there are still some factors to keep an eye on that could reel this growth back in. For example, refrigerated trucks are often a challenge to manage as it pertains to the likes of power consumption, loading/unloading charges, fuel surcharges, and more. Inventory could also be an issue in regards to trailer availability and driver shortage, which is especially true when it comes to the availability of long-haul truck drivers. Finally, expedited freight services and refrigerated trucking are largely dependent on consumer demand. When demand is strong, supply will become more necessary and vice-versa.
With refrigerated trucking on the rise, it could present an ideal opportunity for local trucking companies to get involved. Road Scholar Transport does business with a multitude of pharmaceutical, food, and chemical companies. As a recognized asset-based carrier on the east coast, we offer less-than-truckload, truckload, dry van, frozen and reefer, heated, teams, expedited, weekend service, sanitary equipment, no transfers, same-day service options, and some of the toughest security measures around. Learn more at www.roadscholar.com.
For more information and to see the full report, “”Refrigerated Trucking Market in the US and Canada – Industry Outlook and Forecast 2020-2025,” click here.