Market Trends of Refrigerated Trailer Industry
Growing Cold Chain Logistics Activities are Expected to Drive the Refrigerated Trailer Market
This is an exciting period for cold-chain technology as various advancements in hardware, telematics, and vehicle technology are transforming the transportation of perishable goods across North America, prompting refrigerated fleets to contemplate strategies to stay competitive. However, the reefer community is facing challenges amid business conditions that are more complex than ever before. For instance,
- In February 2024, the agreement between Taikoo Motors, Zuellig Pharma, and Long Feng Medical Logistics officially marked the inaugural deployment of a Volvo FE Electric truck for cold chain logistics in Taiwan. The agreement underscores their collaborative efforts to advance eco-friendly transportation and usher in a fresh era of environmentally sustainable logistics.
While long-term contract freight rates remain stable, overall freight volume has decreased, leading many smaller refrigerated haulers to rely on the spot market for business opportunities. Spot refrigerated rates are approximately 7% lower than the same period in 2022 and more than 5% below their five-year average. Despite these obstacles, refrigerated fleets benefit from a relatively insulated segment of the trucking industry compared to other sectors like dry van transportation, which is experiencing significant upheaval due to factors such as fleet closures, regulatory changes, and shifts in market dynamics.
Asia-Pacific is Expected to Hold the Largest Market Share During the Forecast Period
With rising consumer preferences for fresh and perishable goods, particularly in densely populated urban areas, there is a heightened need for efficient and reliable refrigerated trailers to transport these products from production centers to distribution hubs and retail outlets across the region. Moreover, Asia-Pacific encompasses diverse climates ranging from tropical to temperate, further accentuating the importance of refrigerated trailers in maintaining the quality and safety of perishable goods throughout the supply chain. For instance,
- In Hong Kong, the cold chain logistics industry is witnessing increased demand for maintaining low temperatures throughout the supply chain process, from pickup and warehousing to order management, transportation, and delivery. Current cold chain services in Hong Kong have fallen short of meeting the expectations of food importers, wholesalers, retailers, and the catering industry, as many cold storage facilities lack temperature control once goods leave the cold room, resulting in the degradation of fresh ingredients. To address these deficiencies in Hong Kong's cold chain logistics services, TAHUHU introduced its first automated and intelligent cold chain logistics service in May 2023.
Furthermore, government initiatives aimed at improving food safety standards and modernizing transportation infrastructure are fueling the adoption of refrigerated trailers in Asia-Pacific. Countries such as China, India, Japan, and South Korea are witnessing significant investments in cold chain logistics infrastructure, including refrigerated warehouses, cold storage facilities, and refrigerated transportation fleets, to support the growing demand for temperature-sensitive products. Additionally, technological advancements in refrigeration systems, such as the integration of IoT (Internet of Things) sensors and real-time monitoring solutions, are enhancing the efficiency and reliability of refrigerated trailers, further driving market growth in the region.
