Today, the United States is home to a massive manufacturing industry, as well as a large farming sector. But all those finished goods and foodstuffs need to be transported somehow, such as from factories to warehouses and then to retailers. This is where the freight carrier industry comes in, and large carrier companies can offer jets for fast deliveries and ships to export goods around the globe. Freight trains are a common means of transporting raw materials by land. But what about the small carrier companies that can’t afford jets or trains? These numerous small companies instead offer modest but hardworking fleets of semi trucks, which can travel nearly anywhere on land and for an affordable price. Many of these trucks used specialized trailers, such as carrier reefers or the like. But what is a reefer trailer, and how can a carrier company owner choose the right used reefer trailers to add to their fleet? The industry of carrier reefers is a robust and popular one. Let’s review.
All About Truck Reefer Units
A carrier company owner who looks to buy reefer trailers is getting into a strong and lucrative business. For those not familiar with them, carrier reefers are refrigerated truck trailers that have insulated walls to keep external heat out, and they also have air conditioning units that can chill the interior. Those air cooler units can maintain the trailer’s interior at a temperature from -20 degrees to 70 degrees Fahrenheit, depending on the need of the cargo. As for size, these carrier reefer trailers may range from 28 to 53 feet in length, and the largest of them may be 13.5 feet tall and weigh as much as 44,000 pounds.
The industry for these reefer trailers is strong and still growing, and right now, the United States is home to 5,000 reefer trailers in operation. More and more orders are placed every year, with 40,000 being ordered in January 2018 alone, according to FTR Transportation Intelligence. Experts also say that the worldwide market for these carrier reefers is going to expand further, and from 2016 to 2022, that market may grow at a CAGR of 4.8% or so. This means that the global carrier reefer market value may hit $7.65 billion by the year 2022.
Often, these refrigeration trailer are carrying perishable goods, such as dairy, meats, and frozen processed food for grocery stores, while dry goods may be shipped on board ordinary trailers. At a warehouse, perishables may be stored in cooler units and freezers, then loaded onto reefer trucks for delivery. Once those trucks arrive at a grocery store, dock crews will unload them and store them all in cooler units on the premises. And this is just one example; carrier reefer trailers can be used for any temperature-sensitive cargo. But how to finance them?
Financing Carrier Reefer Units
A truck carrier company owner may decide to buy one or more reefer truck trailers to expand their shipping options to grocery stores and the like, and this means looking online to find them. A buyer may be looking for new units, used ones, or even both, and search for local wholesale units for purchase. New carrier reefer trailers may be more expensive than used ones, but they will be in perfect condition and come with factory warranties. Used units may be bought at a discount price, and the buyer is urged to look them over (and even test their air conditioner units) before making a purchase. The buyer may look over the unit’s wheels, axles, and brakes, not to mention the trailer hitch, air conditioner wiring, and the brake lights.
Financing these means turning to specialized truck lenders, which may approve loans even to borrowers with mediocre or poor credit, though this may mean higher interest rates. Meanwhile, borrowers with good personal and business credit might get as much as 100% of the trailer financed, and at a low interest rate. These lenders will also look into the borrower’s financial history and check for red flags, such as a history of delinquent loan payments or previous bankruptcies. Finally, take note that the reefer trailer itself will act as collateral for the loan, making this a secured loan for the lender.