The modern American manufacturing and farming industries are truly vast, but all the finished goods need to be transported to and from warehouses and retailers. So, this is the job for today’s freight carrying industry, and many carrier companies today offer jets, ships, freight trains, and trucks to deliver goods all over the place. While jets are ideal for fast delivery and ships can cross the oceans, trucks are the best option for transporting limited cargo loads by land. Better yet, even small carrier companies can afford trucks, and these trucks may have a variety of trailers for delivering different cargo. A reefer unit is a good example, such as used Thermo King refrigeration units to wholesale reefer units fresh out of the factory. How can reefer units benefit a carrier company, and what should a buyer know about how to buy a reefer trailer? Even discount, used reefer units may take some work to purchase properly.
All About Reefers
For those not familiar with them, reefer units are refrigerated truck trailers, designed to keep cargo cold during delivery. To this end, a reefer truck trailer will have insulated walls to keep external heat out, not to mention one or more air cooling units to create the desired temperature inside. These trailers may range from 70 degrees Fahrenheit to -20 degrees, based on the needs of the cargo being stored inside. Also, these trailers vary somewhat in size, ranging from 28 to 53 feet in length. The larges ones may be as tall as 13.5 feet and weigh up to 44,000 pounds for carrying a lot of cargo.
This is a rapidly expanding market. Today in the United States, some 500,000 reefer units are in operation across the nation, and the number of orders grew from January 2017 to January 2018. Experts say that the worldwide market for reefer units is going to grow in the next few years; in particular, it may hit a market value of $7.65 billion by the year 2022, and it may grow at a CAGR of 4.8% from 2016 to 2022. After all, reefer units are vital for transporting cold foods and other perishables, which would suffer in an ordinary trailer’s warm interior. Often, it is grocery stores who receive shipments with reefer trucks, and a truck may carry dairy, meats, frozen processed foods, and the like (dry goods might arrive in a regular truck instead). Often, these reefers will visit a warehouse, and workers there will move cold goods from an on-site freezer onto the reefer. When the truck arrives at the grocery store client, dock crews there will then transfer the cold items to on-site freezers and fridge areas.
The Finances
Now, consider a carrier company owner who wants to buy one or more reefer units so that their truck fleet can start making deliveries to grocery stores and the like. New reefer units will cost the most, but these wholesale trailers are going to be in top condition and will have no wear and tear (and they will probably have their factory warranties, too). Meanwhile, gently used reefer units can make for a great deal at a discounted price, though the buyer is urged to look them over in person before agreeing to a deal. The buyer may look over the wheels, axles, and tires, not to mention the trailer’s interior and the wiring of the air cooler units. The buyer might also take the unit for a test-run to check that it can generate and maintain the desired temperatures inside.
As for financing, big banks are reluctant to approve loans to small truck companies, but specialized truck lender companies may be more agreeable. They may approve loans even to companies with mediocre or poor credit, though this may mean financing only a fraction of the trailer, and at a higher interest rate. These lenders check a borrower’s personal and business credit scores alike, and check for red flags such as a previous bankruptcy. But good credit may mean financing the entire trailer, and at a low interest rate. Either way, that trailer will be used as collateral, making this a secured loan and therefore more appealing to the lender for this sort of deal.