Long-Distance Refrigerated Trucking in the US Industry Market Research Report Now Available from IBISWorld

Long-distance refrigerated trucking operators managed to come away from the economic downturn with only minor damage. While reduced consumer spending hurt some industry revenue streams, demand from other markets, including fruit and vegetable wholesaling, remained stable and kept the industry afloat. Revenue is anticipated to rise in the next five years, but growth will be hindered by increased regulation and competition from other modes of transportation. For these reasons, industry research firm IBISWorld has added a report on the Long-Distance Refrigerated Trucking industry to its growing industry report collection.

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IBISWorld Market Research

IBISWorld Market Research

Industry revenue has been volatile over the past five years, but will stabilize with the economy

Los Angeles, CA (PRWEB) September 20, 2012

The Long-Distance Refrigerated Trucking industry has managed marginal gains over the past five years despite being battered by contractions in general manufacturing production and personal consumption. “The industry moves a large number of products in many markets,” says IBISWorld industry analyst Lauren Setar. “Therefore, demand has fluctuated, primarily with regard to demand from frozen food wholesaling, fruit and vegetable wholesaling and meat, beef and poultry processing.” Although revenue from some markets remained relatively stable, reduced consumer spending greatly hurt other sources of revenue (e.g. total trade, as companies in the industry move goods destined for trade). However, revenue has improved since 2010 with the strengthening economy. Due to these factors, in the five years to 2012, IBISWorld estimates that industry revenue will decrease at an average annual rate of just 0.1% to $11.4 billion. Revenue is expected to increase 2.6% in 2012.

Fuel costs make up a large expense for Long-Distance Refrigerated Trucking industry companies. Many firms in the industry use fuel surcharges to counterbalance increased fuel costs. “Surcharges increased revenue over the past five years, but did not help profit because purchase costs increased for operators as well,” adds Setar. As such, rising fuel prices have increased revenue volatility in the past five years. In 2008, although demand had begun to fall, industry revenue grew 1.6% as trucking companies passed fuel surcharges on to clients. But in 2009, demand worsened and revenue fell 12.7% as fuel surcharges were slashed due to falling fuel prices.

The industry is highly fragmented and is characterized by its many small, owner-operated trucking businesses. The low concentration is due to the relative ease of entry into the industry. With little capital outlay, a truck driver can get a loan to purchase a truck and start a long-distance refrigerated trucking business. Although large firms, including major player C.R. England, contribute a low percentage of revenue individually, they maintain significant market power by securing large contracts with major manufacturers and retailers.

In the five years to 2017, the industry is expected to benefit from the recovering economy, with higher volumes of temperature-sensitive goods needing to be transported. Traded goods, demand from fruit and vegetable wholesaling and demand from meat, beef and poultry processing are forecast to increase. During this time, IBISWorld projects that industry revenue will increase; however, growth will likely be hampered by competition and regulations. The Federal Motor Carrier Safety Administration's hours-of-service driver requirements will increase on-duty non-driving time and will slightly cut into industry productivity. Competition from rail transportation and recent infrastructure improvements in that industry will put pressure on industry operators in the next five years. For more information, visit IBISWorld’s Long-Distance Refrigerated Trucking in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in the industry provide long-distance refrigerated trucking services. Products moved by this industry range from meat and poultry to pharmaceuticals and cosmetics, among other goods that require a climate-controlled environment. Goods are typically transported from manufacturers to wholesalers and retailers throughout the country.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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