Spring has sprung and so too should your fleet. In Q2, commercial fleets have plenty of avenues to optimize utilization. While some industries experience a slowdown in operations in Q2, other industries need extra commercial vehicle capacity. The second quarter presents an opportunity for businesses with commercial fleets to form partnerships that could bring in revenue for the rest of the year
Spring typically sees the most rental demand outside of the Q4 holiday season. June and May are peak months, which are expected to have some of the highest rental volume of the year outside of the especially-active fourth quarter. At an average of 24 rental days per COOP by Ryder rental in Q2, there is a strong tendency to rent vehicles long-term.
It comes as no surprise that 2022 is not a normal year for the commercial truck rental market. The nature of rentals in the transportation industry market has changed. We, like you, understand that adapting to this unique problem is as difficult as it is important. With the right technology, your business can take advantage of the potential.
The technology that can give your business an advantage in this market is now nationwide. COOP by Ryder® is the largest commercial vehicle-sharing platform. COOP connects businesses with under-utilized trucks, tractors or trailers to trusted companies looking for rentals. As a platform that facilitates commercial vehicle rentals between businesses, we have a unique perspective. We looked into rental trends for the past several years to guide these insights for your business. If you want a glimpse into where the transportation industry is headed in 2022 and beyond, look no further than our national commercial vehicle rental trends.
To help your business better understand the modern complex rental vehicle trends and help optimize your business, our team at COOP is excited to show you business data-based insights about the second quarter. These insights include a modern take on second quarter seasonal rental demand trends of the largest industries in the space: Food, Retail, Business, Construction, and Consumer Packaged Goods.
Regardless if it’s interstate 95, interstate 40, or some roads between, all national freight aspirations rely on the vehicle capacity. Today’s market has several unique challenges, which means that businesses are getting flexible with how they operate their fleets. Here are some events influencing the transportation industry rental market:
During this unique business context, each industry that uses commercial vehicle rentals for transportation has handled it in a different way. We’ll help you understand which industries in Q2 of 2022 may need vehicles that are idle, and more importantly which vehicles they need.
Historically, Food & Beverage is the top industry for vehicle rentals nationwide and accounts for over 12% of rental days across the U.S.. This demand for rentals from this industry is driven by agricultural harvesting cycles that vary across the nation. Fortunately, COOP allows businesses to access rental demand intrastate. Refrigerated trucks and refrigerated trailers shouldn’t sit idle this year as many Food & Beverage businesses are looking to be flexible with how they reestablish their cold chain logistics.
The Retail industry, the Business & Personal Services industry, and the Consumer Packaged Goods industries rely on final mile commercial vehicle rentals. Most of this rental demand has to do with changing consumer behavior resulting from COVID-19. Many consumers are looking to e-commerce to fulfill their day-to-day needs. Additionally, people are again starting to spend more time on experiences as opposed to luxury goods which helps the Personal Services industry. The final mile vehicles, like sprinter vans and trucks, that are equipped for this purpose go out on average 8 days per reservation. On a COOP reservation, a large dry truck rental goes out on average at $110 a day so this can offset your business expenses easily.
Dry trailers and flatbed trailers demand also increases in Q2, driven in-part by the construction industry preparing for infrastructure improvements and housing projects. These vehicles are great for securing long-term revenue as they average over 22 rental days per transaction.
In Q2 certain vehicles are rented more than others historically. Outside of the significant changes coming out of the supply chain from 2020 and 2021, rental demand changes month-to-month based on many factors that span industries and locations.
Over half of the nation’s demand for commercial rental vehicles comes from trucks. Ecommerce and the localization of manufacturing has driven this trend. Since 2019, the demand for goods that are closer to point of sale has businesses increasingly renting trucks such as box and reefer trucks. As we mentioned, the growth of final-mile vehicle demand will continue through 2022 alongside the rising popularity of consumer packaged goods delivery. Dry trucks that do well to maneuver city streets such as box trucks and cargo sprinter vans will see increased rental demand.
In previous years, medium- and heavy-duty vehicles like trailers and sleeper tractors have made up most of the vehicle rental demand in the Spring. April and May are strong rental demand months for tractors and trailers respectively. Additionally, refrigerated trailers alongside reefer trucks make up nearly 1/5th of the share of total rental days in Spring.
Requests to rent out vehicles in these high-demand specs are coming early in the season. Manufacturing delays, import backlogs, and more, are drawing businesses of all sizes into the rental market. Businesses are competitive about looking to secure long-term rentals while they await production. This could lead to vehicles generating dependable earnings for those that list on COOP throughout the Spring.
In this transportation industry that makes up a 505 billion dollar of the U.S economy, COOP Owners will continue to see high demand through Q2. Our top Owner in Q2 of 2021 earned over $290,000! As you navigate the second quarter of 2022, here are some other things to keep in mind:
How does your business fit in the picture? Adapt to modern challenges. Your business can leverage COOP’s technology to maximize revenue all year long. With our network, our technology, and our team’s expertise, your business has the tools to rent out your vehicles across the nation to generate an additional stream of revenue. And, if you need vehicles, you can also find additional capacity for rent on COOP when you need it.
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