How to Navigate High Trailer Demand
Today’s trailer market is at an all-time high with many opportunities for businesses. Last year, consumers shifted from in-person services and towards home-deliverable goods. As this demand picked-up, many companies’ growth depends on trailers as they compete with rising contract and spot market rates. In 2021 trailers are in very high demand across the nation. The production of commercial trailer vehicles is growing at a CAGR rate of ~5.3% over the next 5 years, taking it from a value of at 28 Billion USD in 2018 to an anticipated 41 Billion USD in 2026. It has left businesses to wonder, how do we manage our trailer needs to face a changing industry?
In this tight market many businesses are turning to COOP by Ryder for their trailer needs. The COOP commercial truck and trailer sharing platform allows companies to generate revenue by renting their trailers out to trusted businesses. Likewise, on the platform, Renters can get extra capacity by choosing from thousands of available trailers. COOP partners with many large trailer rental companies and private fleets nationwide. Our platform is the one-stop shop for all your commercial trailer needs.
Tight Trailer Market Context for Demand
Commercial fleet operators rent trailers to satisfy bulk freight needs for many industries including ecommerce delivery, food & beverage, construction, and courier services to name a few. A significant increase in e-commerce orders and deliveries has boosted the need for more trailers and prompted an operational redistribution of trailers already in service — especially in the less-than-truckload and local delivery segments. In addition the majority energy, construction, automotive, and manufacturing sectors are seeing an uptick in demand as building projects resume. These industries each choose commercial trailers for transporting their goods due to their flexibility and versatility.
The recent COVID-19 pandemic caused lockdowns in 2020, and reduced industrial production in some cases up to 28%. Logistic disruptions including microchip shortages have caused manufacturing delays for many suppliers. Great Dane LLC, Wabash National Corporation, Utility Trailer Manufacturing Company and other major producers anticipate this to affect supply well into 2022. As businesses reopen, the reestablishment of supply chains requires freight to be hauled over the road more often and more quickly with trailers. In the process, the demand for trailers has begun to far outpace the supply as manufacturers play catch-up and businesses look to rent commercial trailers instead to satisfy their needs.
Earn Steady Revenue Renting Your Trailers
The platform provides an opportunity to leverage the surging trailer demand in markets across the nation.
Manufacturing shortages have caused a ripple effect into the secondary rental market and away from leasing. The heightened trailer demand means you can rent out your trailer more often and more quickly. In the case of Champion Trailer Solutions, the trailers they purchased to rent out with COOP were reserved and on the road within 24 hours.
Additionally, Businesses are looking to fix their cold chain logistics before the holidays and it shows with the rental numbers. Many have come to the platform seeking food deliveries to restaurants. Steady demand for cold chain logistic solutions, especially for refrigerated trailers, has been a hallmark of 2021 as in-demand perishables like vaccines, luxury beauty products, and new restaurants require them. Reefer trailers see a top utilization by large freight carriers who are taking up the contracts left for grabs by the shake up of the industry. If your business has refrigerated trailers available, you could earn significant revenue renting them to these businesses.
With COOP, Owners with dry van trailers earn nearly $1,000 per month for each trailer they rent out. Refrigerated trailers generate additional revenue for reefer hours. One Owner that listed their trailers full-time earned $3,562 with a single trailer in a month on the COOP platform alone.
Increasing Your Business’s Trailer Capacity Despite The Market
COOP is the largest trailer rental marketplace because of how we do business. Our platform has partnered with many large trailer companies and private fleets to provide a comparative shopping experience for companies looking to rent trailers. Simply use the platform to filter for the specs your business needs, including: refrigerated, dry, swing-doors, and e-tracks. Then you can compare the rates and availability to fit your commercial trailer rental demand.
Our platform has partnered with multiple large trailer rental companies and private fleets nationwide to make sure you can find what you need. Once your business has found the perfect fit trailer to increase its capacity, you can reserve from the palm of your hand on our mobile app.
If your business has a larger order, our team will coordinate with you to rent bulk trailer capacity from our partners. Many businesses across industries and markets have looked to COOP to meet their increasing capacity needs.
Turning these Trends into Profit for Your Business
How can your business get started sharing trailers? Sign up for free and work with our Customer Success Managers to start generating revenue from your available trailers or reserve the trailers your business needs.