Tank & Refrigeration Trucking in Canada Industry Market Research Report from IBISWorld Has Been Updated

While demand for tank and refrigeration trucking may not experience the same level of volatility as it had over the previous five years, industry revenue will ultimately benefit from stable demand from downstream customers. For these reasons, industry research firm IBISWorld has updated a report on the Tank and Refrigeration Trucking industry in its growing industry report collection.

New York, NY (PRWEB) April 19, 2014

Despite some initial bumps in the road, the Tank and Refrigeration Trucking industry has shifted smoothly over the past five years. “Still battling the effects of the recession in 2009, industry operators struggled to increase industry revenue due to declining shipments from manufacturing firms, constrained levels of consumer spending and continually increasing fuel costs,” according to IBISWorld Industry Analyst Nick Petrillo. A major turnaround occurred in 2012, however, as the total volume of Canadian trade experienced an impressive 2.3% increase, consumer spending grew 1.9% and industry revenue grew 0.6%, the industry's first increase in revenue since the recession hit. Tank and refrigeration trucking has continued its steady path in the years since, although industry revenue has declined overall at an annualized rate of 3.8% to $9.5 billion over the five years to 2014.

Rising fuel prices are a constant challenge for industry operators and price volatility has seriously impacted the industry's ability to levy stable fuel surcharges to its customers. As a hedge against spikes in the cost of diesel fuel, tank and refrigeration trucking companies typically add fuel surcharges to shipping contracts based on the forecast price of diesel fuel over the period. “Diesel fuel is derived from crude oil, the price of which experienced drastic changes over the past five years,” says Petrillo. The world price of crude oil skyrocketed 30.6% in 2011, increased only 1.0% in 2012 and is expected to decline 3.0% in 2014. This volatility will continue to pose a challenge for industry operators that seek to charge competitive rates to customers, but must also charge rates high enough to cover a substantial portion of the fuel costs incurred through shipping operations. Industry revenue is expected to decline an additional 0.5% in 2014.

While demand for tank and refrigeration trucking may not experience the same level of volatility as it had over the previous five years, industry revenue will ultimately benefit from stable demand from downstream customers. As consumer spending on staple goods, such as dairy, meat and other grocery products that require specialized shipping methods increases, demand for industry shipping services will grow.

For more information, visit IBISWorld's Tank & Refrigeration Trucking in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry provides long-distance trucking services for cargo that requires specialized transportation. Companies in the industry transport bulk liquids, frozen goods, dry bulk materials, forest products, automobiles and other specialized freight between metropolitan areas. This industry does not include the transport of used goods.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/04/prweb11776569.htm