COOP New Jersey Market Guide
New Jersey is an excellent home for freight movers. The busiest ports on the East Coast are supported by New Jersey’s extensive road systems. Businesses that own commercial vehicles in New Jersey know the 95 and 295 corridors well. Here goods are connected to an extended transportation network. It comes as no surprise that there are great opportunities for this area of the nation. With the right technology, your business can take advantage of the potential of this transportation industry hub.
Rental Vehicle Insights for New Jersey Businesses
To help your business better understand the rental vehicle trends and help optimize your business, our team at COOP is excited to show your New Jersey business data-based insights. Leverage this guide to make profitable business decisions. If you want to rent out your own vehicles, learn how to get the most out of your fleet when other industries are experiencing seasonal highs and lows in demand. And if you want to rent vehicles, learn when to reserve the capacity you need ahead of times of high rental demand.
Keep your business moving and stay ahead by using this market guide. We’ll help your business understand the transportation trends in your market that maximize your profit.
How New Jersey Trucking Companies See the Market
Commercial vehicles in New Jersey have a wide range of potential uses both interstate and intrastate. Businesses here are, quite literally, surrounded by opportunity. Many small businesses are starting to open up again and establishing connections that can be mutually profitable for a long time. Vehicle sharing connections that create long-term revenue is a business opportunity that applies to business at larger scales as well. With 16 Fortune 500 companies based in New Jersey and various industries sectors experiencing growth, New Jersey commercial vehicle rental demand will be there for business owners looking to optimize their fleet.
Depending on whether vehicles are rented in the north or south of Jersey, Owners on the COOP platform should anticipate that their vehicles will go out of state in different directions. New York and Philadelphia rely on Jersey freight to supply their metropolitan areas. Freight routes to New York come from the counties Bergen and Essex. Cities like Moonachie and Newark primarily need final mile vehicles and day cabs to get the consumer packaged goods from New Jersey warehouses to their point of sale. Meanwhile, Middlesex county makes for large freight lanes to Philadelphia and sometimes extend into Ohio. Cities in this region, such as Cherry Hill, Edison, and New Brunswick, often request rentals to move freight into Philadelphia. Though south Jersey still sees the bulk of rental demand for weeklong rentals of dry trucks, it also sees greater than average demand for long-term and over-the-road tractor trailer models.
Importantly, certain industries’ growth has affected the type of demand the North and South of Jersey see. People look to New Jersey businesses to lead the way as a foundation for the U.S. supply-chain. As the dollar amount contributed to New Jersey’s infrastructure is the 6th most in the country, the infrastructure of the state is certainly ever-growing to support all the industries within.
New Jersey Industries to Watch in 2022
Even though the Food & Beverage industry is the top spot for rental demand, there are other industries that are worth keeping an eye on. Growth in the advanced manufacturing sector makes these two industries upincoming: the Chemicals and Plastics industry and the technology industry. Additionally, tourism to the coastal regions is starting to see a bounceback that presents businesses a chance to increase utilization on their fleets through events.
For the Chemicals and Technology industries, businesses have a great need for refrigerated vehicles all year long. Jersey is known for its advanced manufacturing and rental vehicles are needed to support it. Sensitive raw materials need to be transported and stored at just the right temperature. Chemical and petroleum plants are largely found in southern New Jersey; however; the goods they produce are often delivered to locations across the country, and that comes with a need for commercial vehicles to go nationwide like sleeper tractors and refrigerated trailers.
Vacationing and tourism industries also see demand for final mile vehicles down the whole east side of the state. Best known for its diners, boardwalks, and casinos, areas like Atlantic City are a big tourist destination. Additionally, Asbury Park, made famous as a music venue by Bruce Springsteen, is expected to host many more musicians’ concerts throughout 2022. Rental requests for vehicles like sprinter vans, 26’ box trucks, and other dry vehicles that maneuver well in city spaces are needed in bulk for events hosted in New Jersey’s popular destinations.
Agriculture brings over $1 billion in revenue to this state. So it follows that the Food & Beverage industry has similar, though seasonal, needs. Many of these industry leaders, such as Sysco, are at the heart of food and service in New Jersey. During harvest time, such as with the blueberries in July or apples in September, the need for refrigerated vehicle rentals is high. Businesses with stake trucks as well as reefer trucks can grow from Jersey roots by renting out their vehicles to businesses in the food industry.
This year, a return to large events plus the growth of high-manufacturing technology business operations suggest a peak in this rental demand. Take note of the rental trends in the years leading up to 2021 and what that could mean for 2022’s rental demands.
2022 New Jersey Vehicle Demand Predictions
This market has versatile business needs, as it often sees cargo from around the world into its busy ports freighted out for manufacturing and consumer packaging. Since 2020, final mile vehicles have seen increasing rental demand all year round for consumer packaged delivery. It’s easy to get dry trucks that can easily maneuver city streets, such as box trucks and cargo sprinter vans.
For the rental demand that comes out of the seaports, dry trailers and flatbed trailers are needed by nearby businesses that look to take their goods over-the-road to deliver to other states. Typically, these vehicles are rented out for longer periods of time. Assets like these that can go over the road are great for securing long-term revenue as they average over 19 rental days per transaction.
As reliability returns to the marketplace going into 2022, many New Jersey businesses want to know: When should my business consider alternative ways to utilize my fleet? And how?
Top New Jersey Seasonality Trends to Look For
In order to gauge the future needs of New Jersey , we look to past rental demand trends. Two rental trends throughout the year were very apparent: the fourth quarter sees the highest rental days of the year and final-mile fleets see more demand each year. Use our insights to anticipate when and how you can best navigate your fleet in 2022.
New Jersey is a top producer of many agricultural favorites like Sweet Corn, Tomatoes, and Blueberries. Agriculture provides steady rental demand about 8 months out of the year, however, businesses should stay aware of a phenomenon called ‘The Freeze.’ This refers to the ground getting too cold to grow and stalls Food-Industry-driven rental demand in late fourth quarter and the early first quarter of the year. This slow in rental demand lasts until the ground thaws and the crops start producing again late second quarter. Commercial vehicle rentals for cold-chain logistics are particularly desirable by businesses that supply the Philadelphia Produce Market and grocery stores nationwide. Look out for increased trailer demand in March and July related to the planting and first harvests.
During the summer, businesses in various industries require refrigerated trucks and trailers. Both with chemicals and with food, it is important to maintain a certain temperature to keep the goods safe during transit. In New Jersey, companies request to rent these refrigerated box trucks, refrigerated trailers, all the way down to refrigerated sprinter vans through the COOP platform from June to August.
Rental demand is typically highest for all commercial vehicles around the fourth quarter holiday season, and we predict the same for 2022. With commercial vehicle manufacturing slowdowns and driver shortages, the demand in the holiday season has picked up earlier in the year to ensure they can secure vehicles through the end of the year. Expect to see renters trying to book vehicles as early as August to confirm long-term freight capacity and keep them as late as January to consolidate freight. The Boxing Season, where businesses handle all the consumer packaged item returns from the holiday season from Mid-November to January, is a big driver of box truck rental demand.
What this Means for your Business
Based on the business opportunities we anticipate in the state, New Jersey will see great commercial vehicle rental demand in 2022. If your business is looking to optimize your fleet then COOP’s technology that allows companies to share commercial vehicles is a perfect fit. Renters can compare from hundreds of available vehicles on the marketplace, while Owners can leverage the platform to secure earnings with their fleets yearlong.
Looking ahead to 2022, here’s some things to keep in mind:
- Start today to develop long-term connections. Get in as the platform is launching in the New Jersey market to secure the most demand. Businesses relationships with renters can last long throughout the year.
- Choose the top earning option for your fleet. With more options comes better business decisions. You set your price and rules on your COOP listings, additionally, you choose for each reservation whether to approve.
- Keep the wheels moving. Especially if you’re in an industry affected by the pandemic, list those idle assets to offset expenses.
- Satisfy Diverse Need for Refrigerated Vehicles. Food, chemical, and technology companies are in demand for reefer vehicles that are idle in your fleet, especially around summertime.
- Plan around Seasonal Rental Demand. List your vehicles as available during rental demand peaks for all vehicle types in the third and fourth quarter and also during opportune windows like the high trailer demand in March.
Tools like the COOP platform are key to getting ahead in the competitive transportation industry. Join COOP so that your business can be flexible to the market’s conditions.
Note Regarding Forward-Looking Statements: Certain statements and information included in this Market Guide are “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.