Refrigerated Transport Industry Procurement Intelligence, Supplier Ranking, Pricing & Cost Structure
- Meenal Deshpande
- Apr 13, 2022
- 3 min read
Procurement Outlook
Refrigerated transport is a method of transporting shipments (Meats, fish, fruits, vegetables, pharmaceutical products, etc.) with specially designed temperature-controlled trucks or vehicles. The transporting trucks have a built-in refrigeration system that maintains the regulated temperature through the shipment process.
Based on the type of cargo carried, refrigerated transport vehicles can be categorized into the following segments:
· Isothermal trucks: It has insulating walls, as well as the floor and ceiling inside the merchandise section to control the temperature.
· Refrigerated trucks: This isothermal vehicle manages to reduce the temperature inside the cargo area and preserve it for a long duration.
· Fully integrated refrigerated truck: The truck has a device that cools the cargo box. It reduces the temperature inside the merchandise and keeps it stable between 12 degrees and -20 degrees, depending on the product inside the vehicle.
· Calorific truck: It generates heat and manages to increase the interior temperature (above 12 degrees) and keep it stable for around 12 hours.
Demand Outlook
The global refrigerated transport market was valued at USD 16 billion in 2020 and it is expected to grow at a CAGR of 6% from 2020 to 2027 due to the increasing trade of perishable commodities across the globe. The fish & seafood industry is the largest contributor in the end-user segment of the global refrigerated transport market with more than 50% revenue share. APAC is the largest geographic segment in the global industry due to the strong presence of the seafood and meat industry across the region. APAC accounted for more than 40% of revenue share.
Cost Drivers
The cost of refrigerated transport services can be categorized into two parts. Cost of vehicle (Fixed cost) and service costs (Variable cost). The fixed cost has a small share in the overall cost of refrigerated transport services. Whereas, variable costs play a crucial role in determining the total cost of refrigerated transport services. Fuel costs, driver wages, insurance, toll charges are the major variable cost component. Fuel costs and driver wages accounted for 55-60% of the overall cost of service. The share of fuel costs and driver wages changes based on region. For instance, driver wages in APAC countries are 25-35% lower than in North America and Europe.
Read report summary: https://www.grandviewresearch.com/pipeline/refrigerated-transport-industry-procurement-intelligence-report
Add-on Services
Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of the supply chain which helps in efficient procurement decisions.
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