OD5402 Long-Distance Refrigerated Trucking in The US Industry Report

INDUSTRY REPORT OD5402
Long-Distance Refrigerated Trucking in

the US
Chilly trip: Mounting competition and regulation may affect industry growth
Shahool Al Bari | June 2022
IBISWorld.com 1-800-330-3772 info@IBISWorld.com

Long-Distance Refrigerated Trucking in the US June 2022
Contents
ABOUT THIS INDUSTRY.................................. 4 COMPETITIVE LANDSCAPE.......................... 21
Industry Definition................................................................4 Market Share Concentration............................................. 21
Major Players...................................................................... 4 Key Success Factors........................................................21
Main Activities..................................................................... 4 Cost Structure Benchmarks............................................. 22
Supply Chain....................................................................... 5 Basis of Competition......................................................... 24
Barriers to Entry............................................................... 25
INDUSTRY AT A GLANCE................................ 6 Industry Globalization........................................................ 26
Executive Summary............................................................ 8 MAJOR COMPANIES...................................... 27
INDUSTRY PERFORMANCE............................9 Market Share Overview..................................................... 27

Related Companies........................................................... 27
Key External Drivers...........................................................9 C.R. England, Inc.............................................................. 28
Current Performance........................................................ 10 Knight-Swift Transportation Holdings Inc.......................... 30
INDUSTRY OUTLOOK.................................... 13 OPERATING CONDITIONS............................ 32
Outlook.............................................................................. 13 Capital Intensity................................................................. 32

Industry Life Cycle............................................................. 15 Technology & Systems......................................................33
Revenue Volatility..............................................................33
PRODUCTS & MARKETS............................... 16 Regulation & Policy........................................................... 34
Industry Assistance........................................................... 35
Supply Chain..................................................................... 16
Products & Services.......................................................... 16 KEY STATISTICS............................................ 36
Demand Determinants...................................................... 17
Major Markets....................................................................18 Industry Data..................................................................... 36
Business Locations........................................................... 19 Annual Change..................................................................36
Key Ratios......................................................................... 36
Industry Financial Statement............................................. 37
ADDITIONAL RESOURCES............................39
Additional Resources........................................................ 39
Industry Jargon..................................................................39
Glossary............................................................................ 39
CALL PREPARATION QUESTIONS............... 41

Role Specific Questions.................................................... 41
External Impacts Questions.............................................. 42
Internal Issues Questions.................................................. 42
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About IBISWorld
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About This Industry

Industry Definition Industry operators provide long-distance refrigerated trucking services, moving climate-sensitive products ranging
from meat and poultry to pharmaceuticals and cosmetics, among other goods. Goods are typically transported from
manufacturers to wholesalers and retailers throughout the country. This industry excludes any regional
transportation services that can be completed in under a day.
Major Players C.R. England
Knight-Swift Transportation Holdings
Main Activities The primary activities of this industry are:
Providing refrigerated truckload services
Providing ancillary services like brokerage and logistics services
Providing ancillary services like dedicated services
Providing ancillary services like dry van truckload services
The major products and services in this industry are:
Refrigerated truckload
Refrigerated intermodal trucking
Brokerage and logistics
Dedicated services
Other services & freight
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Supply Chain
SIMILAR INDUSTRIES
Rail Transportation in the US Long-Distance Freight Trucking in Local Specialized Freight Tank & Refrigeration Trucking in the
the US Trucking in the US US
RELATED INTERNATIONAL INDUSTRIES
Freight Road Transport in the UK Road Freight Transport in Road Freight Transport in New Freight Trucking in China
Australia Zealand
Long-Distance Freight Trucking in Freight Road Transport in Ireland
Canada
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Industry at a Glance
Key Statistics Key External Drivers % = 2017–22 Annual Growth
$12.0bn 2.1% -0.7%

Revenue Demand from meat, beef and Demand from frozen food
poultry processing wholesaling
Annual Growth Annual Growth Annual Growth
2.3% 2.5%
2017–2022 2022–2027 2017–2027 Demand from fruit and vegetable Consumer spending
2.0% 1.7% wholesaling
2.3% 13.4%
Total trade value Price of diesel
$780.2m
Profit
Industry Structure
Annual Growth Annual Growth
2017–2022 2017–2022 POSITIVE IMPACT

1.4% Concentration Industry Globalization
Low Low / Increasing
MIXED IMPACT
Life Cycle Revenue Volatility
6.5% Mature Medium
Profit Margin
Capital Intensity Regulation & Policy
Annual Growth Annual Growth Medium Medium / Increasing
2017–2022 2017–2022 Technology Change
-0.2pp Medium
NEGATIVE IMPACT
Industry Assistance Barriers to Entry
Low / Steady Low / Steady
2,927
Businesses Competition
High / Increasing
2017–2022 2022–2027 2017–2027
3.4% 2.4% Key Trends
 High fuel prices prompt operators to implement fuel

surcharges to offset inflated operating costs
22,114
Employment  The number of industry enterprises has risen

 Industry operators contend with significant external
competition from other modes of transportation
2017–2022 2022–2027 2017–2027
 Industry operators will exhibit a slowdown in revenue due to
2.5% 2.0% lower fuel surcharges
 Consumer preferences for organic and farm-to-table goods

may bolster demand for industry services
$2.8bn  Operators are expected to boost wages to entice truck
Wages drivers to stay
Annual Growth Annual Growth Annual Growth  Fuel costs are a significant expense for the industry, often
2017–2022 2022–2027 2017–2027 creating slim profit
2.8% 1.9%
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Products & Services Segmentation
Major Players SWOT
STRENGTHS
Low Imports
WEAKNESSES
Low & Steady Barriers to Entry

Low & Steady Level of Assistance
High Competition
Low Profit vs. Sector Average
High Customer Class Concentration
High Product/Service Concentration
High Capital Requirements
OPPORTUNITIES
High Revenue Growth (2022-2027)

Demand from frozen food wholesaling
THREATS
Low Revenue Growth (2005-2022)

Low Revenue Growth (2017-2022)
Low Outlier Growth
Low Performance Drivers
Price of diesel
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Executive Summary Chilly trip: Mounting competition and regulation may affect industry
growth
Operators in the Long-Distance Refrigerated Trucking industry transport a large variety and volume of climate-
sensitive products throughout the United States using trucks that pull climate-controlled, refrigerated trailers
(reefers). The industry has encountered volatile conditions over the five years to 2022. Increases in consumer
spending and a growing total trade value drove demand for industry services higher. However, due to the negative
effects of the COVID-19 (coronavirus) pandemic, fuel prices and the overall industry fell drastically in 2020.
Conversely, in 2021 and 2022, an increase in fuel prices and an overall economic recovery helped industry rebound,
increasing 10.2% and 5.5%, respectively. Altogether, industry revenue is anticipated to increase at an annualized
rate of 2.0% to $12.0 billion over the five years to 2022.
Steep diesel price declines, largely in 2019 and 2020, bolstered industry demand during the period, but fuel-
surcharge revenue inflows suffered, reducing overall revenue growth and stimulating volatility. Many industry
operators use fuel surcharges to counterbalance price fluctuations, increasing rates in line with rising fuel prices.
The diesel price crash in 2020 has made industry services less costly because fuel is inexpensive, but it has also
limited fuel surcharge inflows. Fuel costs are a significant expense for the industry, often creating slim profit margins
for operators. In total, the average industry profit margin declined over the past five years to 2022 as a result of
steep competition and the COVID-19 (coronavirus) pandemic affecting operational activities.
The industry is expected to benefit from a growing economy over the next five years to 2027, with higher volumes of
temperature-sensitive goods requiring transportation. Traded goods and demand for meat, beef and poultry
processing are anticipated to increase, especially as the pandemic subsides. However, an anticipated decline in fuel
prices are expected to slow down industry revenue, the price of diesel falls from its current period highs.
Consequently, IBISWorld estimates that industry revenue will increase at an annualized rate of 1.7% to $13.1 billion
over the next five years. However, mounting competition and regulation may affect industry growth. Additionally,
competition from the Rail Transportation industry (IBISWorld report 48211) will continue to put pressure on industry
operators over the next five years.
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Industry Performance
Key External Demand from frozen food wholesaling

Drivers
Frozen food wholesaling products are transported using refrigerated trucking services. As a result, when demand for
frozen food products decreases, industry demand falls as well. Demand from frozen food wholesaling is expected to
rise in 2022, representing an opportunity for industry operators.
Total trade value
The industry receives a significant amount of revenue from the transportation of climate-sensitive goods that have
been imported into the United States or are in the process of being exported. Total trade value, which serves as a
proxy for trade volume, is expected to increase in 2022 as international trade resumes.
Consumer spending
Consumer spending levels increase when disposable income and consumer confidence levels are high. When
consumer spending increases, spending on products that require refrigerated transportation will increase, therefore
increasing demand for industry services. Consumer spending is expected to increase in 2022.
Demand from fruit and vegetable wholesaling
Refrigerated trucks are used to keep fruit and vegetables fresh during the transportation process. When there is
more demand for fruits and vegetables that need to be shipped, demand for industry services rises. Demand from
fruit and vegetable wholesaling is expected to increase in 2022.
Demand from meat, beef and poultry processing
Meat, beef and poultry make up a significant market for the industry because these products are temperature
sensitive and spoil if not transported properly. As a result, they require refrigerated truck transportation to reach
retailers and consumers. Demand for animal processing serves as a proxy for the amount of meat, beef and poultry
being transported; therefore, as demand for meat processing increases, so does demand for industry services.
Demand from meat, beef and poultry processing is expected to increase in 2022.
Price of diesel
The trucks in this industry primarily use diesel fuel in their operations. Many industry operators implement fuel
surcharges to lessen the effects of the changes in the price of fuel and preserve profit margins. When operating
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costs increase due to rising fuel prices, industry revenue increases with the additional fuel surcharges but profit
often contracts. The price of diesel is expected to increase drastically in 2022, however its volatility poses a threat
for industry operators.
Current The Long-Distance Refrigerated Trucking industry transports goods that

Performance require a cold or constant temperature using temperature-controlled
trailers (reefers), via truck.
These goods are typically transported between manufacturers, wholesalers and retailers nationwide. The most
common commodities shipped in reefers include meat, fish, fruits, vegetables and dairy products. Industry operators
also ship nonedible products, including films, flowers, medical supplies, paintballs, pharmaceuticals and other
temperature-sensitive products. These products require a specific temperature prior to delivery to the market.
DEMAND CONDITIONS
The industry carries a variety of products, so demand for refrigerated

trucking services is contingent upon consumer spending levels.
Demand from industries such as frozen food wholesaling, fruit and vegetable wholesaling and meat, beef and
poultry processing has been crucial to industry demand over the past five years. Although the industry experienced
growth in demand over the five years to 2022, sharp declines in the price of diesel and other commodities presented
significant headwinds that reduced industry expansion during the period. The price of diesel in particular declined in
2019 and 2020, partially due to the COVID-19 (coronavirus) pandemic, reducing the value of industry services.
However, as the economy recovered following the pandemic, diesel prices rose drastically, exceeding pre-pandemic
levels, bolstering revenue. Overall, industry revenue has increased at an annualized rate of 2.0% to $12.0 billion
over the five years to 2022, including a 5.5% rise in 2022 alone.
Demand from the Fruit and Vegetable Wholesaling industry (IBISWorld report 42448), which is a core market for the
industry, has experienced steady growth at an annualized rate of 0.4% over the five years to 2022. Similarly,
demand from frozen food wholesaling (42442) experienced annualized growth of 2.4% during the same period.
Rising consumer spending levels and growing disposable income per capita resulted in higher demand for industry
services through 2019, as consumers increased spending on perishable foods and more expensive products, such
as organic, farm-to-table fruits and vegetables. While demand declined slightly in 2020 due to the effects of the
COVID-19 (coronavirus) pandemic, it quickly rebounded the following year, bolstering demand for industry services.
PROFIT CONDITIONS
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Profit has declined over the five years to 2022, despite steady and
increasing demand from downstream markets.
Volatile fuel prices have created large fluctuations in industry revenue and profit during the period. Generally, when
the price of fuel drops, operators lose out on fuel surcharges in the short run, dampening industry revenue growth.
High fuel prices prompt operators to implement fuel surcharges to offset inflated operating costs. This is largely the
result of trucking companies passing higher fuel costs to clients. Although these fuel surcharges shield revenue from
losses, they do little to widen profit margins as purchasing costs continue to increase.
Despite fuel prices declining in 2019 and 2020, industry profit declined, primarily due to the effects of the COVID-19
(coronavirus) pandemic, which significantly affected supply chains and international trade, reducing industry
demand. While industry profit increased gradually following a rise in fuel prices, it has yet to exceed pre-pandemic
levels. Overall, the average industry profit margin, measured as earnings before interest and taxes, accounts for
6.5% of revenue in 2022.
INDUSTRY STRUCTURE
Most operators in this industry are self-employed owner-operators,

classified as nonemployers.
These operators generally rely on larger enterprises to subcontract a portion of their transportation activities to
drivers who own their own trucks and trailers. Although nonemployers comprise the majority of industry enterprises,
they earn a much smaller portion of total industry revenue. These companies must accept the higher rates offered
by larger operators due to their low level of market power. In years of poor revenue growth, these nonemploying
enterprises are the first to exit the industry, but they are also the first to reenter when things improve.
Strong demand growth during the five-year period outside of 2020, was sufficient to attract new nonemploying
businesses to enter the industry. Consequently, the number of industry enterprises has risen an annualized 3.4% to
2,927 over the five years to 2022. Additionally, with higher employee regulations, industry wages paid and total
employment have also grown during the period. Over the five years to 2022, industry employment is estimated to
have increased at an annualized rate of 2.5% to 22,114 people.
TECHNOLOGY AND COMPETITION
Industry operators conduct business based on the ability to deliver

temperature-sensitive goods.
The truck refrigeration unit must monitor interior load temperatures and keep cargo at the precise degree specified
by the shipper. Due to this particular process, many companies have adopted diagnostic applications and other
technological devices to help avoid potential refrigeration system problems. Many of these systems are automatic
and make troubleshooting easier and faster, which helps improve equipment uptime and prevent loss or damage of
goods. These changes have enabled industry operators to better market themselves and improve their perception of
reliability to combat increasing external competition.
Industry operators contend with significant external competition from other modes of transportation. The Rail
Transportation (48211) generates significant competition for the industry due to its safe, environmentally friendly and
cost-effective nature. Rail transportation is one of the most fuel-efficient methods of transportation on a per-ton
basis, but competition is limited because geographic features reduce the number of overlapping routes available.
Conversely, trucks use roads, which enables industry operators to access customers in a greater number of fields
and provide door-to-door service. Additionally, the industry competes with coastal and air transportation. As fuel
prices increased, rail transportation began to service a larger portion of the customers demanding climate-controlled
transportation services.
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Historical Performance Data

Price of
Domestic Diesel
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand ($ per
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) gallon)
2013 10,486 3,466 2,249 2,043 16,830 N/A N/A 2,360 N/A 3.90
2014 11,140 3,877 2,391 2,182 17,830 N/A N/A 2,522 N/A 3.80
2015 11,162 4,029 2,517 2,310 19,331 N/A N/A 2,537 N/A 2.70
2016 10,731 3,857 2,670 2,444 19,389 N/A N/A 2,426 N/A 2.30
2017 10,884 3,830 2,690 2,482 19,571 N/A N/A 2,430 N/A 2.70
2018 11,090 4,000 2,939 2,723 20,052 N/A N/A 2,564 N/A 3.20
2019 11,000 4,056 2,846 2,657 20,219 N/A N/A 2,592 N/A 3.10
2020 10,317 3,677 2,824 2,653 19,595 N/A N/A 2,455 N/A 2.60
2021 11,374 4,061 2,997 2,810 21,128 N/A N/A 2,659 N/A 3.30
2022 12,003 4,319 3,124 2,927 22,114 N/A N/A 2,788 N/A 4.40
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Industry Outlook
Outlook The Long-Distance Refrigerated Trucking industry is expected to grow,
albeit at a slower pace, over the five years to 2027.
As the economy continues to recover from the COVID-19 (coronavirus) pandemic, consumers will increasingly
purchase frozen food, fruits, vegetables, meat, beef, cosmetics, flowers and other temperature-sensitive products.
This will drive demand for refrigerated truck services higher. Industry revenue is expected to grow at an annualized
rate of 1.7% to $13.1 billion over the five years to 2027.
The price of diesel is forecast to decline. It is currently projected to fall an annualized 1.8% over the five years to
2027. This is a result of the world price of crude oil falling after significant rises during the current period. As a result,
industry operators will exhibit a slowdown in revenue due to lower fuel surcharges. However, crude oil's high price
volatility alone will make it difficult for industry operators to estimate fuel costs. This means profit margins will remain
volatile during the period, as operators try to identify optimal ordering quantities and prices.
Additionally, the industry will continue to contend with competition from other transportation industries, which will
also pressure margins. Specifically, due to recent infrastructure improvements and increased capacities, rail
transportation is moving a larger share of total freight. Additionally, recent concerns about climate change and
carbon emissions will increase demand for less-expensive and environmentally friendly methods of transportation.
Since rail transportation is one of the most fuel-efficient methods of transportation on a per-ton basis, rail will
threaten demand for the industry. This is expected to limit revenue growth over the next five years. However, many
operators are slowly investing in electric trucks and reducing carbon emissions, slightly offsetting competition from
rail transportation.
DOWNSTREAM MARKETS
Demand from fruit and vegetable wholesaling is currently anticipated to

grow at an annualized rate of 1.7% over the five years to 2027.
Similarly, demand from frozen food wholesaling is anticipated to increase an annualized 1.1%. Generally, growth is
anticipated across broader retail and wholesale consumer goods markets during the period. The industry's core
markets will benefit from growth in consumer spending and rising total trade values in the United States. Often
carriers of staple goods in the economy, operators will remain a critical part of the supply chain over the next five
years, benefiting from positive growth in demand from core markets.
Improving consumer sentiment, population growth and strong export demand are expected to strengthen demand
for industry services during the period. Additionally, consumer preferences for organic and farm-to-table goods are
also likely to bolster demand for industry services.
Although demand from core industry markets is anticipated to steadily increase, it is worth noting that uncertainty
surrounding tariff changes could affect demand from trade markets. IBISWorld anticipates that total trade value will
grow an annualized 2.8% over the five years to 2027, recovering from a substantial blow dealt by the coronavirus
pandemic in 2020. Because the industry handles many products destined for international trade, expanding trade
flows will directly benefit industry revenue growth. Export growth will be supported by the ongoing resurgence of
economies abroad as they increase their spending patterns. Additionally, the key export markets of Canada and
Mexico are expected to undergo enhanced economic growth. During the coming period, imports are also forecast to
grow as US consumer spending increases at an annualized rate of 1.9% over the five years to 2027, bolstered by a
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recovering economy.
REGULATION AND PARTICIPATION TRENDS
The Federal Motor Carrier Safety Administration (FMCSA)'s introduction

of Compliance, Safety & Accountability (CSA) in 2010 stimulated an
increase in industry wages prior to the current period.
The CSA measures and evaluates commercial carrier and individual driver on-road safety performance. Due to this,
carriers are less willing to hire and keep drivers with marginal ratings, which has increased demand for qualified
drivers. Furthermore, the industry is struggling to increase the participation rate among new drivers. In fact, the
Bureau of Labor Statistics estimates that the average age of a truck driver is older than 55, an increasing figure that
indicates a reduced willingness among younger generations to enter the industry. During the outlook period,
operators are expected to boost wages to entice drivers to stay. As a result, wages are expected to grow at an
annualized rate of 1.9% to reach $3.1 billion over the five years to 2027. Similarly, total employment is anticipated to
rise an annualized 2.0% to 24,368 people.
In 2013, the FMCSA's revisions to the hours-of-service requirements for drivers took effect. These requirements
specify the length of time that drivers are permitted to drive and work. As a result, these changes to the "34-hour
restart" provision and required breaks cut the maximum work week for drivers from 82.0 hours to 70.0. These
requirements mean that operators now require more employees (or subcontracted owner-operators) to maintain
previous service levels. Consequently, the number of industry operators is forecast to grow an annualized 2.4% to
3,504 as more nonemployers are subcontracted over the next five years to 2027. Additionally, there are lobbying
groups pushing for more stringent regulations regarding driving hours to improve highway safety. If any laws are
passed in the coming years to further limit driver hours, there will likely be a rise in carriers' costs, which poses a
problem as operators continue to contend with mounting external competition.
Performance Outlook Data

Domestic Price of
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand Diesel ($
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) per gallon)
2022 12,003 4,319 3,124 2,927 22,114 N/A N/A 2,788 N/A 4.40
2023 12,204 4,391 3,205 3,006 22,541 N/A N/A 2,840 N/A 3.90
2024 12,462 4,478 3,285 3,082 23,038 N/A N/A 2,902 N/A 4.00
2025 12,662 4,554 3,364 3,159 23,483 N/A N/A 2,956 N/A 4.00
2026 12,877 4,649 3,427 3,220 23,919 N/A N/A 3,010 N/A 4.00
2027 13,077 4,715 3,504 3,294 24,368 N/A N/A 3,065 N/A 4.00
2028 13,201 4,775 3,583 3,371 24,771 N/A N/A 3,111 N/A 4.00
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Industry Life Cycle The life cycle stage of this industry is Mature
LIFE CYCLE REASONS
Technology change is moderate and aimed at increasing truck efficiency and safety
The industry is growing at a slightly faster pace to the overall economy
Companies in the industry have offered more logistics but most revenue is still generated through
transportation
The Long-Distance Refrigerated Trucking industry is in the mature phase of its life cycle. IBISWorld estimates that
the industry value added (IVA), a measure of the industry's contribution to the overall economy, will grow an
annualized 2.1% over the 10 years to 2027. Comparatively, the United States GDP is anticipated to increase an
annualized 2.0% during the same 10-year period. Typically, an industry is classified as mature when its IVA growth
rate is in line with that of US GDP, as is the case with this industry.
Further indicative of the industry's mature life cycle stage is the state of technological change, its ability to expand
and the nature of its downstream markets. The industry has a moderate level of technological change, most of which
is aimed at increasing truck efficiency and safety. These changes are not meant to create a new product or service
but to make the process more efficient and thus generate higher profit margins. Additionally, the industry has had
only limited success in developing new markets and expansion is dependent on growth in demand from existing
customers. The markets that require refrigerated transportation generally do not change and have fully accepted
and adopted the industry's services. These markets are for commodities that are often, by definition, mature. Finally,
industry operators have been slowly adopting logistics services and supplemental services, such as storage and
packaging. Despite these slight changes, the essential refrigerated transportation services provided by the industry
remain the same.
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Products & Markets

Supply Chain Key Buying Industries Key Selling Industries
1st Tier 1st Tier
Grocery Wholesaling in the US Truck & Bus Manufacturing in the US
Dairy Wholesaling in the US Truck, Trailer & Motor Home Manufacturing in the US
Frozen Food Wholesaling in the US Fuel Dealers in the US
2nd Tier 2nd Tier
Egg & Poultry Wholesaling in the US Gasoline & Petroleum Wholesaling in the US
Retail Trade in the US Tire Dealers in the US
Freight Forwarding Brokerages & Agencies in the US Auto Parts Stores in the US
Products & Services
REFRIGERATED TRUCKLOAD
Operators generate the bulk of their revenue from transporting

temperature-sensitive goods over long distances throughout the United
States.
The most common commodities shipped include meat, fish, fruits, vegetables and dairy products. However,
companies in the industry also ship non-edibles, including film, flowers, medical supplies, paintballs,
pharmaceuticals, cosmetics, plasma and other temperature-sensitive products. These products all must maintain a
specific temperature until delivery to the market. A refrigerated truck is capable of transporting perishable items over
long distances without deterioration of the cargo taking place prior to reaching the appointed destination. This
segment has remained relatively steady over the past five years, as it is the industry's primary service estimated to
generate 75.0% of industry revenue in 2022. This segment has increased as a share of revenue over the five years
to 2022, as other niche or luxury segments struggled to maintain revenue as a result of COVID-19 (coronavirus).
Intermodal shipments, which are included in this segment, are estimated to account for 2.8% of industry revenue.
Intermodal shipment of refrigerated containers between multiple modes of transportation is growing in popularity,
which means this segment is anticipated to increase its revenue share during the next five-year period. Intermodal
transportation between trucks and class I railways, in particular, is expected to increase in popularity as the
technologies improve alongside US total trade.
DEDICATED SERVICES
Industry operators provide dedicated services, which entail the

assignment of drivers and equipment to an individual customer for long-
term transport.
This enables customers to secure year-round, guaranteed capacity without completing operations in-house. These
services will generate 1.3% of industry revenue in 2022. Dedicated services are anticipated to increase in popularity
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as retailers become increasingly unwilling to complete industry services in-house and seek alternatives. In 2020,
however, dedicated services will fall as a share of industry revenue. Often considered a more premium or luxury
service, the coronavirus pandemic has constrained demand for dedicated services. However, it rebounded slightly
as the effects of the pandemic waned.
BROKERAGE AND LOGISTICS
Many enterprises in the industry provide brokerage services through

which they arrange for other companies, often owner-operators, to
transport freight while retaining the billing, collection and customer
management responsibilities.
Operators also provide intermodal services, which involve the transport of the company's trailers on railroad flatcars
for a portion of a trip, with the balance of the trip using tractors or, to a lesser extent, contracted carriers. These
services account for 4.1% of revenue. This segment has increased as a percentage of revenue over the past five
years to 2022, as existing contracts have expanded and operators seek subcontract operations.
OTHER SERVICES AND FREIGHT
Even though industry trucks are outfitted with temperature control

equipment, operators will often carry products that do not require
refrigeration as a way to maximize production capacity and minimize the
time that trucks remain idle, particularly during periods of weak demand.
For example, companies may transport temperature-sensitive products one way and return with nonperishable
products in an attempt to maximize production capacity. Dry van truckload services account for about 5.0% of
industry revenue. Furthermore, operators will offer value-added services such as refrigerated warehousing and
packaging alongside transportation to generate additional revenue. Combined, other services account for the
remaining 16.8% of industry revenue.
Demand Demand for trucking services is mostly influenced by movements in

Determinants manufacturing production, retail and wholesale sales and consumption
trends.
Refrigerated trucking services are used to transport perishable foods from manufacturer facilities to the retail outlets
that will then sell the goods to the general public. Food items, such as raw meats, frozen entrees and dairy products
such as ice cream, sherbet or yogurt are transported to supermarkets and other retailers using a refrigerator truck.
Industry companies also transport chemicals, medical supplies, flowers, pharmaceuticals and other temperature-
sensitive commodities. The manufacturing, retail and wholesale trade sectors are largely tied to economic growth,
including growth in the labor market and changes in disposable income. When the economy is performing well,
people spend more on consumer goods and demand for refrigerated trucking services increases.
To a lesser extent, the volume of imports and exports also influences demand. The Long-Distance Refrigerated
Trucking industry earns a significant amount of revenue from the transportation of climate-sensitive goods that have
been imported into the United States or for goods that are going to be exported.
The industry's operations are heavily dependent upon the use of diesel fuel. The price and availability of diesel fuel
are subject to political, economic and market factors that contribute to its high volatility. When fuel prices rise, the
cost of long-distance refrigerated trucking operations also increases, putting pressure on profit margins. Larger
companies try to manage fuel costs by purchasing fuel in bulk or having volume purchasing arrangements with
national fuel centers that enable drivers to purchase fuel at a discount while in transit. Operators may also pass on
the cost of rising fuel prices to customers in the form of fuel surcharges, which are adjusted according to the cost of
the fuel.
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Major Markets
WHOLESALERS AND RETAILERS
Wholesalers and retailers contract operators in this industry to transport

products from central distribution centers to establishments and
warehouses.
These markets account for 55.7% of revenue in 2022, which makes them the largest industry market segment by
some distance. The retail and wholesale trade sectors are largely tied to economic growth, including growth in the
labor market and changes in disposable income. When the economy is performing well, people spend more on
consumer goods and, therefore, demand for transportation services increases. As consumer spending has risen
during the current period, retailers have experienced a growth in demand for their services.
Retailers' portion of industry revenue has grown over the past five years, while that of wholesalers has decreased.
This is largely a result of changes in the structure of the supply chain during the period, with more retailers entering
into direct agreements with producers that can, at times, offer distribution of their own. In 2022, this market segment
will have increased as a share of industry revenue. Generally, demand for perishable grocery items and frozen food
is considered highly inelastic. Additionally, industry operators exhibited an influx of demand from meal kit delivery
services that required refrigerated trucking to transport their meals to consumers. As a result, while the (COVID-19)
coronavirus pandemic has strained the industry across the board, revenue generated from this market segment has
largely proven to be more robust, inflating as a share of revenue.
MANUFACTURERS
Refrigerated trucks are frequently used to transport perishable foods from

manufacturer facilities to the retail outlets that will then prepare and sell
the goods to the public.
Often, the food items are processed foods that must be kept frozen to maintain freshness. Foods such as raw
meats, frozen entrees and frozen dairy products such as ice cream, sherbet or yogurt are conveyed to supermarkets
using a refrigerator truck. Manufacturers represent the second-largest market for industry services, accounting for
31.9% of industry revenue in 2022.
A steady increase in consumer spending caused shipping volumes to rise over the five years to 2022, benefiting
demand for long-distance refrigerated trucking services. Overall, this market has grown during the current period, in
large part because of healthy consumer demand and the growing popularity of organic or farm-to-table food
products. As more manufacturers move to distribute their own products, demand for industry services by producers
will continue to grow.
OTHER
Other markets outside of wholesalers, retailers and manufacturers

account for the remaining 12.4% of industry revenue.
This includes the construction and agricultural markets, as well as waste removal and disposal companies. In
particular, the agricultural sector uses industry operators to transport goods such as fruits and vegetables, which
often require insulated vehicles. Additionally, if a trailer has excess capacity, refrigerated truck trailers are filled with
mixed pallets of durable goods to properly use empty space and increase efficiency.
18 IBISWorld.com
Exports in this industry are Low and Steady
Imports in this industry are Low and Steady
The industry is involved in shipping goods across US borders to and from Canada and Mexico. However, the Long-
Distance Refrigerated Trucking industry offers services that are not recorded as trade by the US International Trade
Commission because the industry largely generates revenue within the United States. Some vehicles, equipment
and fuels used in the industry may be imported, but these international transactions are reported at the
manufacturing level. Furthermore, all of the industry's major players have operations in neighboring Canada and
Mexico and engage in cross-border freight operations.
Business
Locations
As a long-distance industry, it is important to note that industry operators generally provide services nationwide or across state
borders. Consequently, industry operators are able to locate their businesses anywhere while operating nationwide, with the
exception of several states that have different regulations that may be preventative. Nonetheless, the geographic distribution of
Long-Distance Refrigerated Trucking industry establishments is reflective of the industrial and agricultural output spread and land-
bridging activity of imports in the United States. Land bridging is the interchange of freight between ocean transportation and
different forms of ground transportation, including long-distance freight trucking and rail. For example, large container ships unload
cargo on the West Coast and then distribute the cargo by land to the East Coast via Chicago. Transporting goods across the
United States via truck rather than across the Panama Channel via ship saves about one week of transit time. This has become
increasingly critical to consumers of industry services as just-in-time inventory has become more prevalent.
The high proportion of establishments in the Southeast, Great Lakes and Plains regions reflects each region's greater output from
industrial, manufacturing and agricultural production, respectively. Additionally because Chicago is a land transportation hub for
Asian imports, there is a large percentage of establishments in the Great Lakes region. The Southeast, Great Lakes and Plains
regions contain an estimated 23.1%, 15.5% and 17.1% of establishments, respectively. The West is also accountable for 11.4% of
establishments and the Southwest for 15.7%. These breakdowns are broadly similar to the regional population density of each
region. Nevertheless, there are certain states that form national transportation hubs or have an increased concentration of
establishments due to the strategic importance of their location.
The states with the largest number of establishments are Texas (11.0%), California (7.2%), Illinois (4.6%), Florida (5.1%) and
Iowa (3.3%). Illinois and Iowa, in particular, represent states with a much higher concentration of establishments in comparison
with the concentration of the US population. These states generally include transportation hubs that service key national
19 IBISWorld.com
transportation routes.
The number of establishments only includes employer establishments because many self-employed truckers spend the majority of
their time on the road and do not work out of physical offices. Nevertheless, self-employed individuals often subcontract with
larger companies. Consequently, nonemployer establishment distribution follows a pattern that is similar to that of establishments
along the major transportation routes and manufacturing centers.
20 IBISWorld.com
Competitive Landscape
Market Share
Concentration
Concentration in this industry is Low
The industry exhibits a low level of market share concentration, with the top four players accounting for less than
20.0% of total industry revenue. The industry is highly fragmented and is characterized by its many small trucking
businesses. For example, the average operator in the industry employs fewer than five people simply because of the
prevalence of nonemploying operators. Moreover, the low concentration is due to the relative ease of entry into the
industry. With a little capital outlay, a truck driver can get a loan to purchase a truck and start a long-distance
refrigerated trucking business for themselves.
Although the major players contribute a lower share of revenue individually, they maintain significant market power
by securing large contracts with major manufacturers and retailers, such as Walmart. These larger industry
participants also subcontract owner-operators to transport goods and fulfill their contracts, which increases their
ability to set rates and standards.
Key Success IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
Factors
Optimum capacity utilization:
Operational experience, especially in the loading and use of vehicles and equipment, will increase efficiency and
output.
Ensuring pricing policy is appropriate:

Effective cost management through pricing policy, such as the implementation of fuel surcharges, can help ensure
strong profit margins and revenue.
Access to highly skilled workforce:

The industry competes intensely for skilled drivers, so having the ability to attract and retain employees is critical for
success in the industry.
Having a good reputation:

Having an established reputation for delivering products on time and in good condition is crucial for success.
Operators often transport time-sensitive products that will spoil if not delivered on time and under the right
temperature conditions.
Access to efficient technologies and equipment:

High-quality equipment, including newer fleets and cutting-edge communication technology, enables operators to
minimize repair and maintenance costs, improve productivity and boost profitability.
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Cost Structure
Benchmarks
Profit
The average industry profit margin, measured as earnings before

interest and taxes, is expected to account for 6.5% of revenue in 2022.
Although industry profitability improved during much of the five-year
period due to increased demand for industry services and recent
plummets in fuel costs, the average margin has fallen since 2017. In
2020, as the COVID-19 (coronavirus) pandemic has affected the
industry and the broader United States economy substantially, the
average profit margin has declined. Although the reduced purchase
costs stemming from lower fuel prices have staved off any significant
declines in profit, operators are struggling to compete for revenue as
demand has dropped. However, following a recovery period after the
pandemic, profit margins began to rebound gradually.
Regardless of fuel costs, industry operators still generate larger profit

margins than players in other non-specialist transportation industries,
such as the Long-Distance Freight Trucking industry (IBISWorld report
48412). Long-distance refrigerated trucking companies earn higher
profit margins because they use specialized equipment and provide a
specific service, reducing the number of competitors in the industry.
Profit is expected to grow over the next five years to 2027 as the
economy recovers and demand picks up.
Wages
Wages are estimated to account for 23.2% of industry revenue. Wages

have remained relatively constant as a portion of industry revenue over
the past five years, increasing moderately. This is largely attributed to
employers' ability to downsize their fleet quickly during times of
economic downturn due to relatively low qualification requirements.
However, according to the Bureau of Labor Statistics, the average age
of truck drivers is 55. As a result of growing retirement levels and a
shortage of new drivers, operators have steadily increased average
wages to attract new employees to fill the employment gap.
Overall, total industry wages are estimated to have increased as a

share of industry revenue over the five years to 2022. With the lingering
labor shortage, many operators have increased wages as an incentive
for drivers to stay at their current companies.
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Purchases
Purchases represent the industry's largest cost, making up 32.7% of

revenue. Truck purchases or lease-purchase payments are often a
significant operating expense for industry operators. Additionally, many
companies make payments to third-party capacity providers and other
non-trucking operations as well as payments to independent
contractors. With the change in the US Environmental Protection
Agency's diesel emissions standards, companies are expected to
purchase more efficient reefers and generator sets over the coming
years. Other costs include communications equipment and telematics
software.
Fuel is another large component of the industry's purchases. Fuel is

estimated to comprise more than half of total purchase costs in 2022.
The price of diesel has displayed high levels of volatility during the
current period, falling rapidly in 2019 and 2020. In 2021 and 2022,
however, the price of diesel rallied significantly. Industry operators
lessen the effects of fuel costs through fuel surcharges to clients, which
offset the operating cost of a price increase. However, surcharges are
often imperfect and therefore, profit margins will contract as they do not
cover the entirety of a fuel price increase. The industry's competitive
nature forces operators to absorb some of the cost when fuel prices
skyrocket. These fuel surcharges can therefore shield revenue from
losses, but with adverse effects on profit.
Marketing
Due to the business-to-business nature of services, marketing generally

accounts for a minimal portion of industry revenue. Marketing has
consistently been accountable for just 0.2% of industry revenue over
the five years to 2022.
Depreciation
Due to increasing regulation levels surrounding truck emissions

standards, operators have been incentivized to replace trucks and
upgrade their engines. Due to this large capital investment,
depreciation has increased over the past five years as a share of
revenue. Although a sizeable portion of industry operators own their
own vehicles and thus incur depreciation expenses, many operators opt
to lease their trucks to avoid large capital expenditures. These leases
are not depreciable unless the lease is considered a lease-to-own
contract. Growing access to financing options, such as lease-to-own
programs, has seen industry truck ownership levels increase. Overall,
IBISWorld estimates that depreciation represents 6.2% of industry
revenue in 2022.
23 IBISWorld.com
Rent
Rent accounts for a moderately consistent portion of industry revenue,

estimated to be 4.5% of revenue in 2022.
Utilities
Utilities expenses are moderately above the average for a trucking

industry, largely due to the costs associated with maintaining
refrigerated facilities and cooling the trailers. Utilities are estimated to
account for 0.4% of total industry revenue in 2022, having remained
largely unchanged since 2017.
Other Costs
Additionally, companies in the industry must pay for regular truck

maintenance and repairs due to heavy lifetime usage of vehicles and
trailers, as a properly maintained truck can reliably cover over one
million miles in its lifetime. Industry operators also experience a variety
of other expenses, including insurance and legal fees. These costs can
vary greatly based on the size of companies operating in the industry.
Overall, IBISWorld estimates that other costs will account for 26.2% of
industry revenue in 2022.
Basis of Competition in this industry is High and the trend is Increasing

Competition
The Long-Distance Refrigerated Trucking industry is highly fragmented
and experiences a high level of internal and external competition.
Industry operators compete with other truckload carriers that provide temperature-sensitive services, including
companies outside the industry that primarily offer dry-van services, but provide refrigerated trucking services as a
smaller segment of operations. The industry also competes externally with railroads and other transportation
industries.
INTERNAL COMPETITION
Operators primarily compete on the basis of quality of service, rates,

truckload capacity and delivery time.
24 IBISWorld.com
Industry service providers are largely considered identical when compared with one another, which places an
emphasis on price competition between smaller owner operators in particular. However, larger companies that offer
competitive pricing and reliable service are able to attract large food and consumer packaged goods companies,
whose products require temperature-sensitive services and that ship multiple truckloads per week. Such clients (e.g.
Kraft and General Mills) seek rapid delivery times and favorable rates when choosing a refrigerated trucking service,
which often makes major industry players attractive due to the significant size of their fleets available for dedicated
services. Establishing customer relationships with these companies is critical for industry success and especially
depends on the successful delivery of time-sensitive items.
Operators that use state-of-the-art equipment and have access to experienced professional drivers gain a
competitive advantage. These operators are better able to provide highly reliable services such as on-time pickup
and delivery performance, climate-monitoring and live delivery updates, as well as superior customer service.
Competition for qualified drivers is intense and is expected to increase as a result of ongoing driver shortages in the
industry. High-quality equipment, including newer fleets and cutting-edge communication technology, may help a
company attract qualified drivers. Maintaining a relatively new and standardized fleet enables operators to minimize
repair and maintenance costs, thus boosting profitability. It also increases fuel economy and improves customer
acceptance by minimizing service interruptions caused by breakdowns.
EXTERNAL COMPETITION
The industry's main external competition comes from the Rail

Transportation industry (IBISWorld report 48211).
As reported by the American Trucking Associations, trucking was the most frequently used mode of transportation in
2019, hauling an estimated 80.4% of total freight value and 72.5% of total freight tonnage (latest data available).
Nonetheless, trucking is less efficient than rail transportation in terms of fuel consumption, which encourages some
companies to opt for rail transportation to save on costs when transporting large loads. Intermodal rail services are
in the most direct competition with long-haul refrigerated trucking because it involves the carriage of truck trailers
and intermodal containers by a combination of modes, usually including rail and local trucks. However, many
consumers will still opt for trucking due to its convenience and speed, as trucks can be loaded and unloaded much
faster than trains. Furthermore, trucks provide door-to-door service anywhere in the US, covering a wide array of
locations.
Barriers to Barriers to Entry in this industry are Low and the trend is Steady
Entry
25 IBISWorld.com
Barriers to entry into the industry are low because Barriers to Entry Checklist
operators generally need only a commercial driver's
license and a truck to establish operations. There are Competition High
many freight brokers or rental options available to obtain a
refrigerated trailer. The initial cost of purchasing or leasing Concentration Low
a truck is not a substantial deterrent to entry into the
industry, with several options available. Nonetheless, new
Life Cycle Stage Mature
entrants experience several challenges, including
establishing relationships with clients for consistent work.
Although many nonemployers are owner-operators who Technology Change Medium
purchase and drive their own trucks, new operators can
often struggle to attract qualified drivers. New entrants Regulation & Policy Medium
may find it hard to compete with the established
reputations for quality and timeliness among larger Industry Assistance Low
players. Such players typically have long-term
relationships with large food and consumer packaged
goods companies whose products require temperature-
sensitive services and that ship multiple truckloads per
week. Larger clients, such as Walmart, Kraft and General
Mills, will be reluctant to switch to long-distance
refrigerated trucking services that do not have established
reputations for quality, even if these companies offer
favorable rates.
To compete effectively in the industry, particularly on the

basis of rates and delivery time, new players may also be
required to invest in technological equipment and
software that increases efficiency and lowers operating
costs. New entrants also need to place a high priority on
the recruitment and retention of qualified drivers to
compete on the basis of customer service and quality.
Access to steady workloads often necessitates good
industry connections, including freight brokers with
several working options and acceptable freight rates.
Industry Globalization in this industry is Low and the trend is Increasing

Globalization
The Long-Distance Refrigerated Trucking industry has a low level of globalization. Most operators in the Long-
Distance Refrigerated Trucking industry generate the majority of their revenue in the United States. Nonetheless, a
growing number of operators, including major player CR England Inc., have expanded throughout North America,
transporting refrigerated products to and from Mexico and Canada.
26 IBISWorld.com
Major Companies
Market Share Overview
Related Companies
Competitors Company Type Employee Segment Revenue ($m) Market Share (%) Profit ($m)
C.R. England All Star 500+ Employees 664.5 6.95 55.6
Knight-Swift Transportation Holdings Rising Star 500+ Employees 324.7 3.4 30.4
27 IBISWorld.com
Companies with 5.0% industry market share are displayed in the PDF version of this report. You can view insights for all companies associated
with this industry on my.ibisworld.com
C.R. England, Inc.
Company Overview
Description C.R. England is a private company with an estimated 7,600 employees. In the US, the company has a notable
market share in at least three industries: Local Specialized Freight Trucking, Tank & Refrigeration Trucking, Long-
Distance Refrigerated Trucking and Local Specialized Freight Trucking. Their largest market share is in the Long-
Distance Refrigerated Trucking industry, where they account for an estimated 7.0% of total industry revenue.
COMPANY TYPE Private Company

TOTAL COMPANY $664.5m
REVENUE
EMPLOYEES 7,600
Other Industries Local Specialized Freight Trucking in the US

Tank & Refrigeration Trucking in the US
Financial C.R. England, Inc. - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2015 700.3 -0.4 58.5 -0.3
2016 653.5 -6.7 55.4 -5.3
2017 689.7 5.5 54.4 -1.8
2018 803.7 16.5 68.8 26.5
2019 759.1 -5.5 59.5 -13.5
2020 664.5 -12.5 55.6 -6.6
Source: IBISWorld
Note: * Estimates
28 IBISWorld.com
C.R. England, Inc.
Company Overview
Industry Market Estimated Industry Market Share
Share, Revenue
and Profit 6.95%
Current Year
(2020)
Estimated Industry Revenue
$664.5m
Current Year
(2020)
Estimated Profit Margin
8.37%
Current Year
(2020)
29 IBISWorld.com
Knight-Swift Transportation Holdings Inc.
Company Overview
Brands & Trading Knight-Swift
Names
Description Knight-Swift Transportation Holdings is a public company headquartered in Arizona with an estimated 27,900
employees. In the US, the company has a notable market share in at least six industries: Local Freight Trucking,
Long-Distance Freight Trucking, Local Specialized Freight Trucking, Tank & Refrigeration Trucking, Long-Distance
Refrigerated Trucking, General Freight Trucking (Truckload) and Long-Distance Freight Trucking. Their largest
market share is in the Tank & Refrigeration Trucking industry, where they account for an estimated 10.9% of total
industry revenue and are considered an All Star because they display stronger market share, profit and revenue
growth compared to their peers.
COMPANY TYPE Public Company

TOTAL COMPANY $324.7m
REVENUE
EMPLOYEES 27,900
Other Industries Local Freight Trucking in the US

Long-Distance Freight Trucking in the US
Local Specialized Freight Trucking in the US
Tank & Refrigeration Trucking in the US
General Freight Trucking (Truckload) in the US
Financial Knight-Swift Transportation Holdings Inc. - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2016 363.4 N/C 28.6 N/C
2017 367.9 1.2 29 1.4
2018 384.2 4.4 30.3 4.5
2019 420.7 9.5 33.1 9.2
2020 324.7 -22.8 30.4 -8.2
Source: IBISWorld
Note: * Estimates
30 IBISWorld.com
Knight-Swift Transportation Holdings Inc.
Company Overview
Industry Market Market Share
Share, Revenue
and Profit 3.4% -0.5%
Current Year Annual Growth
(2020)
(2016–20)
Industry Revenue
$324.7m -2.8%
(2020)
(2016–20)
Profit Margin
9.36% 1.5%
(2020)
(2016–20)
31 IBISWorld.com
Operating Conditions
Capital The level of capital intensity is Medium

Intensity
The Long-Distance Refrigerated Trucking industry exhibits
a moderate level of capital intensity. On average, industry
operators invest $0.27 in capital for every $1.00 spent on
labor in 2022. Labor includes wages paid to employees for
driving, maintenance and repair, cleaning and
administration as well as benefits. Recently, the Federal
Motor Carrier Safety Administration (FMCSA)'s introduction
of the Compliance, Safety and Accountability (CSA)
program has led to an increase in industry wages, which
has been emphasized by a shortage of new drivers joining
the industry. The CSA measures and evaluates
commercial carriers' and individual drivers' on-road safety
performance and removes underperforming drivers from
the industry. Due to CSA compliance requirements,
carriers are less willing to hire and keep drivers with
marginal ratings, which increases competition for qualified
drivers.
Operators within the industry may incur significant capital

investment costs to join the industry. For those wishing to
outright buy their equipment, communications equipment,
efficient and advanced vehicles and telematics software
are all purchases that increase capital costs dramatically.
Many operators, however, choose to finance their vehicles,
which enables operators to extend the payment period via
lease-purchase options as well as traditional financing. Due
to the long lifetime of trucks, drivers are often able to
reduce the capital cost of ownership significantly as a
share of annual revenue by extending financing terms over
multiple years. Although some technological changes and
purchases can reduce the need for nondriving and
maintenance labor, many labor functions in the industry,
such as driving, cannot be made less labor intensive.
Additionally, extended routes call for an extra driver to
adhere to driving federal safety requirements. However,
despite increasing competition, capital investment is
anticipated to decline slightly over the five years to 2027,
as wages are expected to increase as a portion of revenue.
32 IBISWorld.com
Technology & Potential Disruptive Innovation: Factors Driving Threat of Change

Systems
Long-Distance Refrigerated Trucking services have become a crucial

component of the US supply chain, responsible for the transportation of many
perishable goods.
In combination with the lack of viable alternative technologies or systems, there is very little disruption in this industry. The
industry's services and markets are extremely well-defined and technological changes focus primarily on efficiency
improvements, such as those discussed above.
The level of technology change is Medium
Technological changes, especially those linked to communications, load and

vehicle tracking and data interchange, have transformed the industry over the
past decade.
Technological advancements have enabled an increase in operational efficiency and reduced costs. For example, fleet
telematics, which are terrestrial and satellite-based tracking and messaging systems, now enable more efficient
communication with drivers, enable companies to receive real-time load position updates and provide customers with
freight visibility. These systems also enable operators to more efficiently monitor information, including fuel mileage, idling
time, temperature settings and run time for temperature-controlled units.
Industry operators benefit from a broad assortment of technological tools and equipment. Companies that use freight
optimization software can better select loads that match a company's overall criteria to maximize profit and efficiency. Such
systems analyze criteria that may include the time it takes to reposition a fleet, the determined capacity for expedited loads,
driver availability and home time, among others. Additionally, operators implement safety systems.
Companies also use electronic data interchange and internet communication with customers concerning freight tendering,
invoices, load status and other data. Electronic on-board recorders help to monitor drivers' hours of service. Auxiliary power
units enable operators to decrease fuel costs associated with idling tractors. Some players even use fuel-routing software
that helps optimize the fuel stops for each trip to take advantage of volume discounts that may be available for the
company. Electrical diagnostic applications are now being used to monitor refrigeration units to help avert potential system
problems when transporting goods long distances.
Over the five years to 2027, significant technological changes are likely to alter the industry landscape. For example,
driverless truck prototypes are being produced, while hybrid and electric trucks have already entered production stages at
several truck manufacturers. While autonomous vehicles are unlikely to reach the roads during the next five-year period,
more fuel-efficient electric and hybrid trucks are likely to result in significant changes for existing operators as well as
regulators. As environmental regulations increase, operators will seek to adopt fuel-efficient technologies as a way to offset
fuel costs and meet regulatory standards. Many operators have already committed to net-zero emissions goals and have
placed orders for electric refrigerated trailers. Furthermore, companies are continuously developing sustainable
refrigeration units to continually cut down on their carbon footprint.
Revenue The level of volatility is Medium

Volatility
33 IBISWorld.com
The Long-Distance Refrigerated Trucking industry is sensitive to a range of

factors, including fuel prices, demand from downstream industries and trade
levels.
The industry has exhibited a moderate level of revenue volatility over the past five years, though revenue is typically not this
volatile. Increased demand prior to 2020 and large variations in the price of fuel, particularly the world price of crude oil and
the price of diesel, have increased revenue volatility over the past five years to 2022. In 2020 alone, industry revenue is
expected to fall 6.2%, followed by an anticipated 10.2% rise in 2021.
Over the next five years to 2027, revenue volatility is expected to be reduced in response to more stable demand and
steadier commodity price expectations, although those remain unpredictable and volatile. While uncertainty surrounding
fuel prices remains, diesel prices are expected to increase steadily over the next five years, which will enable greater
revenue stability.
Regulation & The level of regulation is Medium and the trend is Increasing
Policy
The Long-Distance Refrigerated Trucking industry is subject to numerous
government rules with respect to safety and the environment.
Drivers hired for long-distance refrigerated trucking operations must comply with the safety and fitness regulations set by
the United States Department of Transportation (DOT), including those relating to drug and alcohol testing and hours-of-
service. In 2010, the DOT, through the Federal Motor Carrier Safety Administration (FMCSA), introduced a new system
called Compliance, Safety, Accountability (CSA), to measure and evaluate the on-road safety performance of commercial
carriers and individual drivers. CSA's Motor Carrier Safety Measurement System replaces the former SafeStat system and
attempts to use more roadside data to identify behaviors that foresee safety issues, be more proactive with intervention and
maximize compliance monitoring resources. The implementation of CSA has removed many drivers from the industry, as
carriers are less willing to hire and retain drivers with marginal ratings, which has increased competition for qualified drivers.
Additionally, in December 2011, the FMCSA issued a regulatory rule effective July 2013 that revised the hours-of-service
requirements for drivers, which designates the length of time that drivers are permitted to drive and work. The new rule
retains the 11-hour driving maximum under which the industry has been operating since 2004. However, changes to the
"34-hour restart" provision and required breaks effectively reduce the maximum workweek for drivers to 70 hours from 82
hours. These changes aim to reduce on-duty non-driving time and improve highway safety standards. Furthermore, in
2020, it revised the rulings, expanding the driving window during adverse driving conditions by two hours, requiring a 30-
minute break after eight hours of driving time and enabling an on-duty/not driving period to qualify as the required break.
In 2017, the FMCSA announced the implementation of their new electronic logging device rules, which require drivers to
record their engine activity. By introducing automatic recording of engine activity, the FMCSA aims to increase oversight for
hours-of-service violations while also recording engine idling times. Many truck drivers who operate long-distance delivery
routes drive in sleeper cabs, which include facilities such as internet or small fridges, powered by the truck's engine. Use of
such facilities incentivizes drivers to idle their engines constantly, which can have negative environmental effects.
34 IBISWorld.com
Industry operators must also comply with numerous environmental regulations set forth by the US Environmental Protection
Agency (EPA) dealing with the handling of hazardous materials, fuel storage tanks, air emissions from vehicles and
facilities, engine idling and discharge and retention of storm water. Industry players often operate in industrial areas where
truck terminals and other industrial activities are located and where groundwater or other forms of environmental
contamination may occur.
The EPA adopted new emissions standards that decrease the volume of emissions that can be released by tractor engines
and largely affect tractors manufactured after 2010. Compliance with these regulations has increased the cost of new
tractors as manufacturers have significantly raised new equipment prices, in part to meet the more stringent engine design
requirements imposed by the EPA.
COVID-19 HEALTH AND SAFETY REGULATIONS
In response to CDC guidance, various levels of regulation have been

implemented in the United States to discourage public gatherings, large
events or crowded work environments due to the COVID-19 (coronavirus)
pandemic.
Those regulations have varied from state to state, with little federal regulation implemented. Most states have implemented
various "shelter-in-place" orders this year, in line with CDC guidance, while placing limitations on the ability of businesses to
operate industry facilities at full capacity. Although each state is at different points in their various re-opening or "lockdown"
processes, operators continue to encounter regulatory issues when re-introducing workers to facilities. Nonetheless,
industry operations have at times been classified as, "essential" and remained open this year, while most core trucking
services are naturally socially distanced and remain operational. Despite this, many operators have been forced to
introduce stricter health and safety measures or limit capacity to ensure employee safety.
Industry The level of industry assistance is Low and the trend is Steady
Assistance
The Long-Distance Refrigerated Trucking industry does not directly engage in trade. It is affected by certain tariffs,
however, in terms of the cost of purchasing equipment and parts as well as demand from import or export markets. Tariff
levels vary depending on the type of equipment or parts purchased.
The American Trucking Association, the national representative body for the trucking industry in the United States, also
provides support to industry operators. The association ensures its members' interests are promoted and aims to improve
the business climate for trucking companies. America's Independent Truckers' Association (AITA) provides assistance to
the industry as well. The AITA, which aims to be nonpartisan, provides independent operators and small fleets with
collective bargaining power and discount opportunities.
COVID-19 assistance
The Coronavirus Aid, Relief & Economic Security (CARES) Act, signed into law on March 27, 2020, by the Trump
administration, provided more than $2.2 trillion in economic assistance for US businesses and consumers. Included in the
act were payroll protection loans, which have enabled industry operators to sustain their payroll and keep employees in
their jobs. This has helped industry operators significantly in their efforts to compensate for ongoing revenue declines this
year. Furthermore, additional coronavirus aid has been passed in 2021. The new Biden administration has passed a
substantial economic relief bill worth $1.9 trillion to combat the effects of the pandemic.
35 IBISWorld.com
Key Statistics
Industry Data
Domestic Price of
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand Diesel ($ per
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) gallon)
2013 10,486 3,466 2,249 2,043 16,830 N/A N/A 2,360 N/A 3.90
2014 11,140 3,877 2,391 2,182 17,830 N/A N/A 2,522 N/A 3.80
2015 11,162 4,029 2,517 2,310 19,331 N/A N/A 2,537 N/A 2.70
2016 10,731 3,857 2,670 2,444 19,389 N/A N/A 2,426 N/A 2.30
2017 10,884 3,830 2,690 2,482 19,571 N/A N/A 2,430 N/A 2.70
2018 11,090 4,000 2,939 2,723 20,052 N/A N/A 2,564 N/A 3.20
2019 11,000 4,056 2,846 2,657 20,219 N/A N/A 2,592 N/A 3.10
2020 10,317 3,677 2,824 2,653 19,595 N/A N/A 2,455 N/A 2.60
2021 11,374 4,061 2,997 2,810 21,128 N/A N/A 2,659 N/A 3.30
2022 12,003 4,319 3,124 2,927 22,114 N/A N/A 2,788 N/A 4.40
2023 12,204 4,391 3,205 3,006 22,541 N/A N/A 2,840 N/A 3.90
2024 12,462 4,478 3,285 3,082 23,038 N/A N/A 2,902 N/A 4.00
2025 12,662 4,554 3,364 3,159 23,483 N/A N/A 2,956 N/A 4.00
2026 12,877 4,649 3,427 3,220 23,919 N/A N/A 3,010 N/A 4.00
2027 13,077 4,715 3,504 3,294 24,368 N/A N/A 3,065 N/A 4.00
Annual Change
Domestic
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand Price of
Year (%) (%) (%) (%) (%) (%) (%) (%) (%) Diesel (%)
2013 1.64 20.4 12.4 10.7 26.5 N/A N/A 30.6 N/A -2.50
2014 6.24 11.9 6.31 6.80 5.94 N/A N/A 6.88 N/A -2.57
2015 0.19 3.91 5.26 5.86 8.41 N/A N/A 0.59 N/A -29.0
2016 -3.86 -4.28 6.07 5.80 0.30 N/A N/A -4.38 N/A -14.8
2017 1.42 -0.69 0.74 1.55 0.93 N/A N/A 0.18 N/A 17.4
2018 1.89 4.43 9.25 9.70 2.45 N/A N/A 5.51 N/A 18.5
2019 -0.81 1.39 -3.17 -2.43 0.83 N/A N/A 1.08 N/A -3.13
2020 -6.22 -9.34 -0.78 -0.16 -3.09 N/A N/A -5.29 N/A -16.1
2021 10.2 10.4 6.12 5.91 7.82 N/A N/A 8.30 N/A 26.9
2022 5.52 6.34 4.23 4.16 4.66 N/A N/A 4.84 N/A 33.3
2023 1.68 1.66 2.59 2.69 1.93 N/A N/A 1.87 N/A -11.4
2024 2.10 1.98 2.49 2.52 2.20 N/A N/A 2.18 N/A 2.56
2025 1.61 1.70 2.40 2.49 1.93 N/A N/A 1.86 N/A 0.00
2026 1.69 2.08 1.87 1.93 1.85 N/A N/A 1.82 N/A 0.00
2027 1.55 1.41 2.24 2.29 1.87 N/A N/A 1.81 N/A 0.00
Key Ratios
Imports/ Exports/ Revenue per Wages/ Employees per
IVA/Revenue Demand Revenue Employee Revenue estab.
Year (%) (%) (%) ($'000) (%) (Units) Average Wage ($)
2013 33.1 N/A N/A 623 22.5 7.48 140,196
2014 34.8 N/A N/A 625 22.6 7.46 141,441
2015 36.1 N/A N/A 577 22.7 7.68 131,230
2016 35.9 N/A N/A 553 22.6 7.26 125,112
2017 35.2 N/A N/A 556 22.3 7.28 124,179
2018 36.1 N/A N/A 553 23.1 6.82 127,883
2019 36.9 N/A N/A 544 23.6 7.10 128,196
2020 35.6 N/A N/A 527 23.8 6.94 125,282
2021 35.7 N/A N/A 538 23.4 7.05 125,847
2022 36.0 N/A N/A 543 23.2 7.08 126,056
2023 36.0 N/A N/A 541 23.3 7.03 125,993
2024 35.9 N/A N/A 541 23.3 7.01 125,966
2025 36.0 N/A N/A 539 23.3 6.98 125,887
2026 36.1 N/A N/A 538 23.4 6.98 125,846
2027 36.1 N/A N/A 537 23.4 6.95 125,772
Figures are inflation adjusted to 2022
36 IBISWorld.com
Industry Financial Statement

Historical Average
Industry Multiples 2018 2019 2020 2021 3-Year 5-Year 10-Year

EBIT/Revenue 9.6 4.7 8.1 28.9 13.9 17.8 12.7
EBITDA/Revenue 16.3 11.2 12.6 55.9 26.6 28.0 20.3
Leverage Ratio 2.8 8.9 7.9 0.9 5.9 4.3 3.8
Industry Tax Structure 2018 2019 2020 2021 3-Year 5-Year 10-Year
Taxes Paid/Revenue 0.2 0.3 1.5 1.5 1.1 1.1 1.3
Income Statement 2018 2019 2020 2021 3-Year 5-Year 10-Year

Total Revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Business receipts 92.9 94.7 91.1 88.7 91.5 91.3 89.5
Cost of goods 79.2 79.6 62.4 62.7 68.2 71.5 72.6
Gross Profit 20.8 20.4 37.6 37.3 31.8 28.5 27.4
Expenses
Salaries and wages 9.1 8.7 11.1 11.5 10.4 10.0 9.3
Advertising 0.6 0.5 1.2 1.2 1.0 0.8 0.5
Depreciation 4.5 4.4 3.4 3.6 3.8 4.1 3.7
Depletion 1.6 1.7 0.8 3.7 2.0 1.9 1.5
Amortization 0.6 0.5 0.3 19.7 6.8 4.3 2.4
Rent paid 2.3 2.2 2.8 2.6 2.5 2.4 2.2
Repairs 0.5 0.6 2.1 1.1 1.2 1.0 0.7
Bad debts 0.8 0.5 2.6 1.3 1.5 1.1 0.9
Employee benefit programs 2.9 2.8 4.0 5.7 4.2 3.6 3.0
Compensation of officers 1.5 1.6 5.1 12.7 6.5 4.6 3.0
Taxes paid 0.2 0.3 1.5 1.5 1.1 1.1 1.3
Interest Income 1.0 0.9 0.5 10.8 4.1 2.8 1.8
Other Income
Royalties 0.4 0.4 0.2 9.2 3.3 2.4 1.7
Rent Income 3.0 2.9 1.1 0.6 1.5 2.1 2.1
Net Income 5.8 1.1 4.6 4.5 3.4 9.7 6.7
Balance Sheet 2018 2019 2020 2021 3-Year 5-Year 10-Year
Assets
Cash and Equivalents 6.2 7.0 8.6 7.9 7.8 7.2 6.7
Notes and accounts receivable 9.8 8.8 24.2 24.2 19.1 16.1 11.9
Allowance for bad debts 0.3 0.2 1.0 1.0 0.8 0.5 0.4
Inventories 1.6 1.8 5.1 8.4 5.1 3.7 2.9
Other current assets 12.6 13.5 8.4 8.2 10.0 10.4 10.9
Other investments 32.4 25.6 27.8 21.4 24.9 26.0 28.7
Property, Plant and Equipment 31.0 37.2 31.4 31.8 33.5 35.3 33.4
Accumulated depreciation 7.3 12.2 17.8 18.2 16.1 12.8 10.4
Intangible assets (Amortizable) 11.4 2.0 3.6 4.1 3.2 6.4 6.4
Accumulated amortization 2.2 2.4 0.9 0.7 1.3 1.7 1.8
Other assets 3.2 3.6 7.6 7.2 6.1 5.2 4.7
Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Accounts payable 16.3 17.3 14.9 15.4 15.9 15.3 15.5
Liabilities and Net Worth

Mort, notes, and bonds under 1 yr 0.4 1.4 7.5 8.5 5.8 5.1 3.4
Other current liabilities 12.2 11.6 14.6 13.5 13.2 13.3 9.8
Loans from shareholders 0.2 0.8 2.3 2.2 1.8 1.9 2.4
Mort, notes, bonds, 1 yr or more 3.4 7.7 19.8 21.9 16.5 12.0 16.3
Other liabilities 17.2 18.6 11.6 12.0 14.1 16.0 17.5
Total liabilities 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Capital stock 3.6 2.5 7.9 4.0 4.8 4.8 4.1
Additional paid-in capital 18.5 10.7 23.7 16.0 16.8 18.5 16.5
Retained earnings, appropriated 0.2 0.2 0.7 0.5 0.4 0.3 0.2
Retained earnings-unappropriated 16.6 16.0 16.0 18.5 16.8 16.3 20.8
Cost of treasury stock 5.5 5.7 5.4 6.0 5.7 4.9 6.7
Net worth 51.1 43.3 40.3 33.6 39.1 42.8 43.6
37 IBISWorld.com
Liquidity Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Current Ratio 1.2 1.1 1.4 1.4 1.3 1.2 1.2
Quick Ratio 1.1 1.1 1.2 1.2 1.2 1.1 1.1
Sales/Receivables 22.3 11.3 4.1 8.3 7.9 12.7 23.0
Days' Receivables 16.4 32.2 88.5 44.0 54.9 40.4 26.0
Days' Inventory 3.3 8.1 30.1 24.5 20.9 13.8 9.0
Inventory Turnover 109.9 45.2 12.1 14.9 24.1 60.0 77.3
Payables Turnover 10.6 4.6 4.2 8.2 5.6 8.2 10.0
Days' Payables 34.6 79.4 87.2 44.8 70.5 54.5 43.2
Sales/Working Capital -42.7 -14.6 5.9 9.8 0.3 9.3 -18.0
Coverage Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Debt Service Coverage Ratio 4.5 4.1 0.5 2.4 2.3 8.0 6.0
Leverage Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Fixed Assets/Net Worth 1.4 1.7 1.6 1.9 1.7 1.7 1.6
Debt/Net Worth 2.0 2.3 2.5 3.0 2.6 2.4 2.3
Tangible Net Worth 0.5 0.4 0.4 0.3 0.4 0.4 0.4
Operating Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Return on Net Worth, % 40.9 10.9 20.0 172.9 67.9 87.5 66.5
Return on Assets, % 20.9 4.7 8.1 58.0 23.6 36.1 27.5
Sales/Total Assets 2.2 1.0 1.0 2.0 1.3 1.7 2.1
EBITDA/Revenue 16.3 11.2 12.6 55.9 26.6 28.0 20.3
EBIT/Revenue 9.6 4.7 8.1 28.9 13.9 17.8 12.7
Cash Flow & Debt

Service Ratios (% of 2018 2019 2020 2021 3-Year 5-Year 10-Year
sales)
Cash from Trading 17.3 14.4 52.0 33.8 33.4 29.2 27.7
Cash after Operations 0.9 -0.9 37.9 2.1 13.0 11.5 11.8
Net Cash after Operations 3.9 -4.2 35.0 18.5 16.4 13.3 13.4
Debt Service P&I Coverage 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Interest Coverage (Operating
0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cash)
Source: IRS SOI Tax Stats; US Census Bureau; IBISWorld
38 IBISWorld.com
Additional Resources
Additional FleetOwner Refrigerated Transporter
Resources http://www.refrigeratedtransporter.com
Heavy Duty Trucking

http://www.truckinginfo.com
Global Cold Chain Alliance

http://www.gcca.org
USDA Agricultural Marketing Service

http://www.ams.usda.gov
Industry Jargon COMPLIANCE, SAFETY, ACCOUNTABILITY (CSA)

A program administered by the Federal Motor Carrier Safety Administration to improve commercial truck and bus
safety by reducing crashes, injuries and fatalities related to commercial motor vehicles.
FLEET TELEMATICS
Systems that use electronics and GPS to track the location and other characteristics (e.g. mileage or speed) of
vehicles in a fleet.
REEFERS
Temperature-controlled trucks used by operators in the industry.
Glossary BARRIERS TO ENTRY

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for
new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than
$0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of
capital for every $1 of labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e.
year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving
only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using
the US Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived
by adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers
and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more
establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single physical location where
business is conducted or where services or industrial operations are performed. Multiple establishments under
common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top
39 IBISWorld.com
players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing
and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale
of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)

The market value of goods and services produced by the industry minus the cost of goods and services used in
production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand:
low is less than 5%, medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an industry's life cycle by
considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments;
the amount of change the industry's products are undergoing; the rate of technological change; and the level of
customer acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-
employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as
revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of the past five years.
Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%;
and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
40 IBISWorld.com
Call Preparation Questions

Role Specific Sales & Marketing
Questions
Are your company's sales heavily dependent on the health of the US economy?
The Long-Distance Refrigerated Trucking industry is a key component of the US economy as a whole. When
consumer spending and industrial production are high, as well as trade, revenue will be strong.
How does your company compete for long-term contracts?
A majority of companies and owner-operators alike will work with either freight brokers or directly with companies. A
strong reputation is key to obtaining long-term contracts.
Strategy & Operations
Has your company been exposed to rising diesel costs over the past few years?
Diesel is a key expenditure for operators. Companies will either secure future contracts or use surcharges to hedge
against changes in the price of fuel moving upwards.
Is your operation located in an area with a high number of potential customers?
Demand is primarily generated by food manufacturing and retailers/wholesalers. Access to key markets is crucial for
consistent workloads.
Technology
How have ELDs affected your company?
ELDs set limitations on how many hours a driver can run for, automatically logging engine running time and other
records. They will improve fuel-efficiency and other operational efficiencies, as well as ensuring better driver safety.
It may also create operating inefficiencies and delivery delays.
Have you been able to reduce wage costs by automating operations over the past five years?
Wages typically account for more than 20.0% of revenue on average. While high driver revenue is necessary,
automation can improve other aspects of operation and reduce payroll.
Compliance
Have you had any regulatory expenses that have significantly impacted profitability recently?
Profit is heavily determined by the price of fuel, however spending on upgrades to improve fuel-efficiency and meet
EPA standards, as well as other operational elements affected by regulation, can have a strong impact.
Is your company adequately prepared to adjust to changing environmental standards?
The EPA have implemented strong fuel efficiency requirements, looking to reduce emissions. Newer trucks on are
obligated to meet minimum requirements, which has altered industry incentives.
Finance
How does your company's profit margins compare to your main competitors?
Profit margins are thin, with the average this year estimated to be 6.5%. This means small efficiency improvements
and effective diesel purchasing can make a big difference. These margins are larger than a number of different
freight trucking industries, such as general freight.
How frequently does your company purchase new equipment?
Many companies will forego the option of purchasing new equipment. Trucks and trailers are typically very
expensive, meaning operators choose to lease/broker loads to owner-operators.
IBISWORLD.COM 41
External Impacts Impact: Demand from meat, beef and poultry processing
Questions How much of your revenue depends on demand from meat, beef and poultry? Are there other revenue streams you
can pursue to increase demand?
Meat, beef and poultry make up a significant market for the industry as the products are temperature-sensitive and
spoil if not transported properly.
Impact: Price of diesel

Do you monitor the price of diesel? How will increasing diesel prices affect your company?
The trucks in this industry primarily use diesel fuel in their operations.
Impact: Total trade value

Do you keep track of trade activity? Are you prepared to meet changing demand as trade activity changes?
The industry receives a significant amount of revenue from the transportation of climate-sensitive goods that have
been imported into the United States or are in the process of being exported.
Internal Issues Issue: Access to highly skilled workforce

Questions How do you attract and retain qualified staff? What qualifications must your staff have?
The industry competes intensely for skilled drivers, so having the ability to attract and retain employees is critical for
success in the industry.
Issue: Having a good reputation

Do you have a strong reputation among customers? Have you had any problems with reliability in the past?
Having an established reputation for delivering products on time and in good condition is crucial for success.
Operators often transport time-sensitive products that will spoil if not delivered on time and under the right
temperature conditions.
Issue: Access to efficient technologies and equipment

Do you have access to the latest available and most efficient technology and techniques? How do you achieve and
maintain good product quality?
High-quality equipment, including newer fleets and cutting-edge communication technology, enables operators to
minimize repair and maintenance costs, improve productivity and boost profitability.
IBISWORLD.COM 42
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OD5402 Long-Distance Refrigerated Trucking in The US Industry Report

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OD5402 Long-Distance Refrigerated Trucking in The US Industry Report

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INDUSTRY REPORT OD5402

Long-Distance Refrigerated Trucking in

Shahool Al Bari | June 2022

IBISWorld.com 1-800-330-3772 info@IBISWorld.com

Executive Summary............................................................ 8 MAJOR COMPANIES...................................... 27

INDUSTRY PERFORMANCE............................9 Market Share Overview..................................................... 27

INDUSTRY OUTLOOK.................................... 13 OPERATING CONDITIONS............................ 32

Outlook.............................................................................. 13 Capital Intensity................................................................. 32

CALL PREPARATION QUESTIONS............... 41

About This Industry

Major Players C.R. England

Knight-Swift Transportation Holdings

Main Activities The primary activities of this industry are:

Providing refrigerated truckload services

Providing ancillary services like brokerage and logistics services

Providing ancillary services like dedicated services

Providing ancillary services like dry van truckload services

The major products and services in this industry are:

Refrigerated intermodal trucking

Brokerage and logistics

Other services & freight

RELATED INTERNATIONAL INDUSTRIES

$12.0bn 2.1% -0.7%

2017–2022 2017–2022 POSITIVE IMPACT

2017–2022 2022–2027 2017–2027

3.4% 2.4% Key Trends

 High fuel prices prompt operators to implement fuel

Annual Growth Annual Growth Annual Growth

 Consumer preferences for organic and farm-to-table goods

Products & Services Segmentation

Major Players SWOT

Low & Steady Barriers to Entry

High Revenue Growth (2022-2027)

Low Revenue Growth (2005-2022)

Key External Demand from frozen food wholesaling

Total trade value

Demand from fruit and vegetable wholesaling

Demand from meat, beef and poultry processing

Current The Long-Distance Refrigerated Trucking industry transports goods that

The industry carries a variety of products, so demand for refrigerated

Most operators in this industry are self-employed owner-operators,

TECHNOLOGY AND COMPETITION

Industry operators conduct business based on the ability to deliver

Historical Performance Data

Demand from fruit and vegetable wholesaling is currently anticipated to

REGULATION AND PARTICIPATION TRENDS

The Federal Motor Carrier Safety Administration (FMCSA)'s introduction

Performance Outlook Data

Products & Markets

Grocery Wholesaling in the US Truck & Bus Manufacturing in the US

Frozen Food Wholesaling in the US Fuel Dealers in the US

2nd Tier 2nd Tier

Retail Trade in the US Tire Dealers in the US

Products & Services

Operators generate the bulk of their revenue from transporting

Industry operators provide dedicated services, which entail the

BROKERAGE AND LOGISTICS

Many enterprises in the industry provide brokerage services through

OTHER SERVICES AND FREIGHT

Even though industry trucks are outfitted with temperature control

Demand Demand for trucking services is mostly influenced by movements in

WHOLESALERS AND RETAILERS

Wholesalers and retailers contract operators in this industry to transport