Refrigerated transport is a method of transporting shipments (Meats, fish, fruits, vegetables, pharmaceutical products, etc.) with specially designed temperature-controlled trucks or vehicles. The transporting trucks have a built-in refrigeration system that maintains the regulated temperature through the shipment process. Based on the type of cargo carried, refrigerated transport vehicles can be categorized into the following segments:
Isothermal trucks: It has insulating walls, as well as the floor and ceiling inside the merchandise section to control the temperature.
Refrigerated trucks: This isothermal vehicle manages to reduce the temperature inside the cargo area and preserve it for a long duration.
Fully integrated refrigerated truck: The truck has a device that cools the cargo box. It reduces the temperature inside the merchandise and keeps it stable between 12 degrees and -20 degrees, depending on the product inside the vehicle.
Calorific truck: It generates heat and manages to increase the interior temperature (above 12 degrees) and keep it stable for around 12 hours.
The global refrigerated transport market was valued at USD 16 billion in 2020 and it is expected to grow at a CAGR of 6% from 2020 to 2027 due to the increasing trade of perishable commodities across the globe. The fish & seafood industry is the largest contributor in the end-user segment of the global refrigerated transport market with more than 50% revenue share. APAC is the largest geographic segment in the global industry due to the strong presence of the seafood and meat industry across the region. APAC accounted for more than 40% of revenue share.
The cost of refrigerated transport services can be categorized into two parts. Cost of vehicle (Fixed cost) and service costs (Variable cost). The fixed cost has a small share in the overall cost of refrigerated transport services. Whereas, variable costs play a crucial role in determining the total cost of refrigerated transport services. Fuel costs, driver wages, insurance, toll charges are the major variable cost component. Fuel costs and driver wages accounted for 55-60% of the overall cost of service. The share of fuel costs and driver wages changes based on region. For instance, driver wages in APAC countries are 25-35% lower than in North America and Europe.
Limited availability of refrigerated truck drivers across the world is the major challenge in the global refrigerated transport market. The extent of driver shortage is estimated to be 400,000 truck drivers during the forecast period. One of the biggest problems for the driver shortage is the age of the truck driver. The average age of a truck driver is 46-50, which means that many drivers are older and will be retiring soon. The Covid-19 pandemic has worsened this problem as older truck drivers fear for their health and have gone into early retirement and there are not enough young skilled drivers to replace them. It leads companies to hire unskilled drivers with a low wages, deteriorating the service quality.
C. H. Robinson, DB Schenker, United Technologies, Daikin Industries, Ingersoll-Rand, China International Marine Containers, Utility Trailer, Singamas Container, Schmitz Cargobull, Fahrzeugwerk Bernard Krone, and Lamberet, are some of the leading refrigerated transport service providers. The global refrigerated transport industry features a moderately fragmented landscape with leading players contributing less than 35% of the market share. Industry leaders are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.
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