While the United States is home to a massive manufacturing sector and a lot of farms, there must be a way to deliver all these raw materials, finished goods, and foodstuffs. That is where the freight carrier industry comes in, and the largest carrier firms can offer huge vehicles such as ships to deliver many tons of cargo to the world’s ports by water. Jets can carry cargo very fast over any type of terrain, and on land, freight trains deliver thousands of tons of goods In between these large vehicles are semi trucks, which are certainly smaller but no less important. Trucks don’t require ports, train stations, or landing strips to make a delivery. Most carrier companies are small, and they can certainly afford to fun a small fleet of these vehicles. Also, trucks can have different kinds of trailers, from regular ones to carrier reefers to hazmat trailers. But what is a reefer trailer, anyway, and when should a carrier company owner look up new or used reefer trailers for sale?
The Business of Reefer Trailers
A reefer trailer is a refrigerated truck trailer that is designed to carry cold items in any weather, and control their interior temperatures. For example, Thermo King refrigeration units for sale can accomplish this job for a wholesale buyer, or similar brands. A reefer trailer boasts wall insulation to keep the warmth out, and these trailers also feature air conditioner units that can generate any necessary temperature inside. Typical reefer trailers can maintain a temperature anywhere from -20 to 70 degrees Fahrenheit as needed, and these trailers often use those temperatures to transport cold groceries and other perishable goods. Physically, reefers range from 28 to 53 feet in length, and the largest of them can be as tall as 13.5 feet in height and weigh as much as 44,000 pounds.
Today in the United States, over 500,000 reefer trailers are in operation, and every year, more are ordered. In fact, more were ordered in January 2018 than January 2017, suggesting growth for this trucking sector. Worldwide, the demand for refrigerated trailers such as Thermo King refrigeration units for sale is quite large, and as of 2015, this market weighed in at $5 billion USD. Experts predict that the reefer trailer market will grow even more from 2016 to 2022 at a CAGR of 4.8%, and the market may hit a value of $7.65 billion or so by the year 2022. Often, it is grocery stores and similar retailers that want to hire carrier companies with reefer units in their fleets, and a carrier company owner can add many more clients to their list when they find Thermo King refrigeration units for sale or similar models.
Financing a New Trailer
When a carrier company owner decides to add some refrigeration units to their truck fleet, they can run the numbers and check that there is enough potential business in the area, and if so, they can look up Thermo King refrigeration units for sale, or any brand they like, and find new and used unites in their region. A new reefer trailer will cost the most, but it will be in good condition, and come with factory warranties, too. A gently used reefer trailer will have some wear and tear, but it may be bought at a discounted price. An interested wholesale buyer ought to look over the trailer in person and check for faults in its air conditioner wiring, its wheels and axles, and anywhere else there might be an issue.
Big bank are reluctant to approve loans for small companies like truck carrier companies, but reefer trailer buyers can turn to specialized truck lending firms for help. These firms have more generous terms, and a firm will look into a client’s personal and business credit score and check their financial history for any red flags. A lender with great credit can get as much as 100% of the trailer’s value in a loan, and at a low interest rate. Even lenders with mediocre to poor credit might get a loan too, though with somewhat less favorable terms. And in any case, the reefer trailer itself will serve as collateral, making this a secure loan and thus more attractive to the lender.