A compound annual rate growth of 12.44% is projected for the market of refrigerated transportation and refrigerated services for at least up to 2019. This is according to a report by Research and Markets. The growing need for refrigerated vehicles is a major market emerging in the advent of the retail sector’s growing demand for frozen food. Food is the main drivers of this specific market. As more and more people prefer the convenience of fast food, the restaurant and food industry partners have increased their demand for frozen food and the need to transport it via refrigerated vehicles to extend its freshness is apparent. Efficient logistics services are therefore needed.
Most end-users, if not all, also need product-specific refrigerated services in transportation to avoid contamination. That is why some clients do not want cross-product transportation. The need to travel the shortest route and with lesser stops is also necessary, that is why the best refrigerated transportation providers in the market make strategic partnerships with premier railroads to allow essential intermodal connections across vital shipping lanes over the continental United States. These alliances are important because it is crucial in the network building of intermodal facilities.
Refrigerated vehicles also are prone to releasing pollutants such as GHGs. The government even have established regulations towards the refrigerated transportation sector to regulate their harmful emissions to the environment. These stringent policies and regulations are one of the major challenges of this market in this present time. The passage of these regulations for environmental safety has subjected refrigerated transportation companies to struggles in reducing their GHG emissions for government regulation compliance. But the establishment of the intermodal network allows not only significant savings in operational cost among players in this industry but also reduce their carbon footprint.
The extensive intermodal network also provides real-time monitoring of load, more competitive rates, more reliable door-to-door delivery, and refrigerated transportation solutions that do not compromise product quality. Increased operational efficiency brought about by intermodal network even helped save 40% in fuel cost as compared to traditional operations. This solution does not only provide end-to-end benefits but also improved reliability, safety, and better service.