Refrigerated Trucking Services Procurement Category Market Research Report from IBISWorld Has Been Updated

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Refrigerated trucking services have a buyer power score of 3.8 out of 5, reflecting moderately strong buyer power; benefits in this market include a large number of carriers, homogenous services and low switching costs. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Refrigerated Trucking Services in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Recent price increases have resulted mainly from demand growth, which has exceeded the market’s capacity gains; the reduction in fuel costs and price-based competition have kept the pace of price growth relatively low, however

Refrigerated trucking services have a buyer power score of 3.8 out of 5, reflecting moderately strong buyer power. Buyers benefit from the thousands of carriers operating in this market. The market's fragmented structure enhances competition and facilitates the process of switching suppliers. Some of this market’s largest suppliers include CR England, Schneider, YRC Worldwide and Swift Transportation. The relatively undifferentiated nature of market services also lowers switching costs and makes it easier to compare suppliers based on price.

Prices have grown at a mild rate during the past three years primarily because the market's capacity gains have not kept pace with demand growth. “Food, pharmaceuticals and cosmetics account for most temperature-controlled shipments. Such shipments have risen in volume alongside moderate increases in consumer spending and industrial production, driving demand for market services,” according to IBISWorld business research analyst Scott Winters. Despite the low barriers to entering the refrigerated trucking business, federal regulations have hampered the market's ability to expand its capacity in order to meet rising demand. Recent regulations have shortened interstate drivers' hours of service and increased the administrative burdens associated with truck driving. As such, regulations have effectively exacerbated the market's driver shortage, which was already an issue due to the recent retirement of many baby boomers and the lack of qualified applicants. Fortunately for buyers, declining fuel costs and high competition have helped mitigate recent upward pressure on price.

During the next three years, regulations are expected to continue to make it difficult for carriers to increase capacity at the pace of demand growth. As a result, buyers with long-term needs are advised to negotiate annual contracts, which are the market standard, in the first quarter of the year, when spot rates are historically at their lowest and carriers are less likely to hold out for higher rates. “Securing capacity on an ad-hoc basis can be risky in this market, particularly during harvest seasons. As such, many buyers are better off shipping with contracts rather than spot rates, which may be below contract rates depending on the season and location but are far more volatile,” Winters says. For more information, visit IBISWorld’s Refrigerated Trucking Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of refrigerated trucking services. Suppliers provide temperature-controlled trucking services, including truckload (TL) and less-than-truckload (LTL) chilled and frozen trucking. This market’s suppliers, which include short-haul and long-haul trucking companies, are also called carriers. Buyers are also called shippers in this report.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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