For several years, trends in refrigerated trailer transport have demonstrated progressive growth. In 2022, the entire refrigerated freight market totaled more than $113 billion. At the same time, many experts suggest the growth in this sector will continue to climb in the coming years. However, there are multiple factors that could affect these trailers, commonly referred to as “reefers.” Freight reefer transport in North America in particular seems to be undergoing significant changes at present. And Fratogo continues to keep a close eye on these trends in reefer freights. Based on this, the following offers some key insights about what to expect in the coming year.
Consumer Demand Pressures to Continue
In any industry, it’s important to make some assessment of demand growth over time. For reefer freights, growth predictions are quite favorable. The refrigerated freight market encompasses the transport of a variety of temperature-sensitive goods. These not only include food and agricultural products but also various chemicals and medications. In this regard, recent trends in the refrigerated freight market have shown growing demand for perishable goods. This has been further fueled by the popularity of online grocery shopping. It has also been supported by shifts in consumer preferences for fresh fruits and vegetables. Given these influences, transport using reefer freights is predicted to grow at a rate of 7% annually for the next few years. This is good news for the reefer truck industry from Fratogo’s perspective.
Technology and Sustainability Shifts
Markets routinely change over time as a result of technology advances and societal pressures. The refrigerated freight market is no different in this regard. Major developments in new technologies are promoting significant changes in how reefer freights are managed. For example, telematics, the Internet-of-Things (IoT), and real-time tracking offer better efficiency and quality of service. These advances allow for better temperature and humidity monitoring within cabins specifically. The end result is less freight spoilage while in transit. At the same time, technology innovations are providing better energy solutions for the refrigerated freight market. Reefer freights with electric or hybrid engines produce fewer carbon emissions, which appeals to all stakeholders. These improvements, according to Fratogo’s research, are expected to also encourage the growth of the industry in the coming years.
Supply Chain Considerations
In the wake of the pandemic, supply chains have yet to fully recover. Certainly, things have improved, but incentives to attain better optimization in transport remain. Naturally, reefer freights play a significant role in supply chain functions in relation to the types of goods transported. Therefore, it should not be surprising that the refrigerated freight market is facing significant pressures in this area as well. Fortunately, technologies seem to be coming to the rescue here too. Predictive analytics and AI are being increasingly used to provide just-in-time transits. Likewise, blockchain technologies are being utilized to help secure payments and promote transportation efficiencies. As reefer freights continue to improve in this regard, clients and consumers will increasingly come to rely on them. Thus, this too appears to favor progressive growth of the refrigerated freight market, according to Fratogo.
Being Dynamic and Adaptable Is Essential
As is evident based on the evolving developments described above, the refrigerated freight market is changing rapidly. This means reefer freight will likely become an even larger component of North American transport systems; however, it also means companies will need to stay abreast of these developments and adjust accordingly. In addition to keeping pace with new technologies, they will need to anticipate volume increases as well. This is where companies like Fratogo can help. With deep knowledge of and experience in the refrigerated freight market, Fratogo can assist with dynamic solutions that help companies excel. And it’s those companies that are willing to adapt that will likely be tomorrow’s top performers.