Purchasing a Wholesale Reefer Trailer
The United States has an endless arrays of farms, dairies, and factories that produce all sorts of goods today. Meanwhile, all those goods are transported when carrier companies lend their trucks, trains, ships, and jets to shipper clients in exchange for charging invoices. Larger carrier companies may have some freight trains or jets, while the many smaller carrier companies will have fleets of semi trucks for the job. A typical carrier company may make use of freight brokers to arrange a business deal with shippers who need transport for their goods, and invoice factoring companies can help smooth out the cash flow while invoices are still outstanding.
A carrier company will also concern itself with trailers and truck units, which can be rented, purchased, and financed as needed. Various truck trailer models exist for different jobs, and a reefer trailer for sale may be attractive to a carrier company that wants to start delivering cold goods. What is a reefer trailer, and how can a carrier company find used Thermo King refrigeration units or similar brands of a reefer trailer for sale?
All About Wholesale Reefer Units
These will not be found at a local car dealer. Rather, it is carrier companies who will look for a typical reefer trailer for sale, and a reefer trailer for sale may be either new or used, and vary in size. A reefer, put broadly, is a truck trailer with one or more refrigeration units built into it to circulate cold air inside to lower the temperature. The reefer unit may also have insulation in its walls to help keep the cold inside, and a reefer may have an internal temperature ranging from -20 to 70 degrees Fahrenheit, according to the cargo’s needs. A reefer trailer may range from 28 to 53 feet in length, and the tallest ones may be around 13.5 feet tall. Some of the largest, heaviest reefer trailers may weigh in at 44,000 pounds and may be able to carry a lot of cold goods at once.
This makes for an impressive market size that is growing every year. Right now, some 500,000 reefer trailers are in operation across the United States, and as of 2015, the world’s reefer unit market was valued at $5 billion or so. Experts say that this market may grow at a CAGR of 4.8% from 2016 to 2022, and by 2022, it may have a value closer to $7.56 billion.
Often, it is grocery stores that make good use of reefer units, since a lot of grocery goods are frozen or would spoil in a warm, regular truck trailer. While canned or dry goods such as soup or pasta and bread can be stored in regular trailers, cold items such as meat, dairy, and frozen processed foods will arrive in a reefer unit instead. A grocery store’s dock area will feature one or more cooler units that will house all the items that arrive on a reefer truck. The same is true at the warehouses where the groceries are stored until reefer trucks arrive to pick them up for delivery.
The Business of Reefers
A growing truck carrier company can take on more clients once new trailer models are added to the fleet for flexibility, and that includes reefer trailers. The company’s manager may look online to find a reefer trailer for sale, and choose from new or used models. A new model is more expensive but may have a factory warranty, and will be in excellent condition. A used trailer may be bought at a discount, though the buyer may want to look it over in person before committing to anything.
What about loans? A carrier company may need to take out loans to afford a new reefer, and big banks are often reluctant to approve loans for trucks (this is a risk for them). Instead, dedicated truck loan companies may help out, and a borrower with good personal credit and business credit may get as much as 100% of the new truck’s value in loans at a low interest rate. The lender will still look for red flags in a borrower, though, such as a history of delinquent loan payments or a previous bankruptcy.
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