Commercial Vehicle Rental Market Guide: Second Quarter

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.

Q2 Insights with COOP by Ryder

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.

Commercial Rental Vehicle Insights for April, May, and June

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. 

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Vehicle Rental Considerations for the USA in Second Quarter of 2022

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:  

• Gas shortages. COVID-19 Omicron outbreaks have slowed gas production as well as gas supply shortages resulting from the conflict in Ukraine and Russia, which has all affected the bottom line. With fuel prices rising, many businesses are looking to localize their manufacturing and warehousing. What does it take to optimize the loads carried? Renters seem to think it’s final mile delivery vehicle solutions, which help lower the impact of fuel prices.
  
  
• Higher Import Volume. Imports are still crucial to the economy along with the tractors and trailers used to haul them. Savannah Port, for example, now handles 11,000 containers a day – three times what it was handling just 15 years ago. In California, the rate of transport containers from Asia to the U.S. from the Pacific gateway increased by 179% year over year and this backlog means consistent need for rental units to unload. Heavy-duty vehicle rentals will be in high-demand in Spring as businesses get their shipments out of port and onto the road.  

• Ongoing Driver Shortage. Businesses in transportation have tried to respond to the driver shortage but still are trying to hire more and more drivers. Still, in an industry that never stops moving the best method seems to be fleet flexibility. In some cases, businesses are adjusting to the costs of driver retention and driver training programs that rise up to 20% year-over-year. For other businesses, they have turned to technology like COOP to keep the wheels moving. 

• Microchip shortage. Chip shortages have slowed the manufacturing of new commercial vehicles, in some cases increasing lead times to 26.2 weeks. Even large businesses have to wait till 2023 to grow their fleets. In the meantime, these businesses are looking for vehicles to haul loads while they await their vehicle orders. This need is driving up the demand for long-term vehicle rentals. 

Q2 Rental Trends by Industry 

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.

Q2 Rental Trends by Vehicle Type

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.

A Summary of our Second Quarter 2022 Predictions

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:

• Market Trends in Q2. There are signs of businesses stabilizing despite slowdowns. After 2 years and across multiple industries, such as live event and restaurant companies, a shift has taken place where lessening COVID-19 masks and vaccine mandates are presenting the right opportunity for growth. With the microchip shortage, companies are delayed in expanding their fleet and instead going to the rental market. Other market conditions mentioned here could still create another shift. 
• Industry Trends in Q2. People are starting to spend more on experiences instead of luxury goods. This is driving demand for the Business & Personal Services industry final mile vehicle rentals. Additionally, the Food industry is the top source of rentals and has a need for refrigerated trucks as well as trailers for agricultural harvests and stocking restaurants. 
• Rental Vehicle Trends in Q2. Final mile deliveries are crucial. Higher gas prices and more e-commerce has businesses looking to establish transportation chains that are closer to point of sale. This means high rental demand for box trucks and sprinter vans from restaurants, groceries, essential goods, clothing, and more. Additionally, over the road models like day cab tractors and trailers remain highly sought after rentals from the ports and for dedicated freight lanes. 

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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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.