Is Refrigerated Trucking Poised for Substantial Growth? This past July, the demand for refrigerated trucking services was 15% higher than the same period last year. That's not bad, given the fact that the peak time for refrigerated cargo is late spring and early fall. To have such strong growth during the summer months is very encouraging. So much so that some industry experts are wondering if refrigerated trucking is about to undergo substantial growth. One Wall Street investment firm, Stifel, Nicholas & Co., believes the need for refrigerated services is only going to increase. Analyst John Larkin recently told Fleet Owner magazine that one of the strengths of temperature-controlled freight is that it is not subject to the same volatility as freight carried in tanks, flatbeds, and dry vans. In simple English, it comes down to food. The vast majority of temperature-controlled freight revolves around food products and pharmaceuticals. These are things that are needed by the American consumer at continuous levels. They are not subject to seasonal changes or market fluctuations to the same degree as consumer goods. Therefore, as the demand for food products and pharmaceuticals rises, so does demand for truck driving services offering temperature-controlled freight transport.
Regional Changes Industry experts cite another important factor that may be pushing refrigerated trucking forward. That factor is a shift away from regional, dedicated routes to more local routes concentrating on urban population centers. Driving the population shift is a desire among young people to live in cities rather than in rural and suburban areas. Step back and think about that for just a moment. The best way to get food products and pharmaceuticals into larger urban areas is through trucking. Trains have only limited use in urban environments, as do the local delivery vans and box trucks. The average tractor-trailer gives you maximum freight moving capacity while still allowing vehicles easy access to cities.
On a related note, younger consumers are specifically looking for food products made from ingredients sourced locally. This newfound desire for local foods may put a damper on mass food production in favor of smaller, local and regional operations. Such a shift would most certainly result in a greater need for temperature-controlled freight services to get those local foods to market. Winners and Losers There is no doubt that the trucking industry is evolving, just as every industry does. As we shift to a greater need for refrigerated trucking there will be winners and losers. C.R. England intends to be one of the winners. We already offer temperature-controlled freight services along with standard dry goods trucking. In fact, we are one of the nation's leading providers of both. We intend to continue being a leader in refrigerated trucking for as long as the market demands the services. That said, smaller trucking companies depending on regional and rural dry goods might have trouble in the coming years. That's not to say we will see large numbers of these companies going out of business, but that margins will be lower and profits harder to come by. We expect that the temperature-controlled sector will be just the opposite. High margins and good profits will be the norm for years to come. As a whole, we expect the trucking industry to be on solid ground for the foreseeable future. Trucking remains the bedrock of the American economy, transporting food and consumer goods from coast-to-coast. There is simply no way to replace what the trucking industry does for the country. A Great Career C.R. England believes there is a place for you in the trucking industry. If you believe in personal responsibility, integrity, and excellent customer service, we offer truck-driving jobs with training through our partner CDL schools located in six states. When you train with Premier Truck Driving Schools, you are guaranteed a job with C.R. England as long as you meet all of our other hiring requirements. Truck driving offers a fantastic career opportunity with competitive pay and stable work. Make no mistake; the industry is currently undergoing a shortage of qualified drivers. There is plenty of work to be had for those who want it. At C.R. England, we take care of our drivers because we know how important they are to our company. When you work for us, you will be assigned your own dedicated tractor and a manager to assist you in making the most of your career. Owner-operators are also encouraged to apply with our company as well. We want to help you maximize your earning potential by driving for one of the oldest and most reputable trucking companies in the industry. We look forward to the future of refrigerated trucking and the industry as a whole. We invite you to join us as we move into that future.
Sources: 1. Fleet Owner – http://fleetowner.com/fleet-management/temperature-controlled-trucking-poised-take 2. C.R. England CDL Truck Driving Schools – http://www.crengland.com/truck-driving-schools/overview