WorldCargo
REEFER INDUSTRY
news
The total leased fleet of 40ft control fleets in excess of 50,000
(8ft 6in) reefers is now down to x 40ft high cube, with the next
7,000 units, all of which are at two largest, TAL and Triton, hold-
least eight years old. The oldest ing over 25,000 each. Florens
have been in service for over 15 claims around 16,500 as 40ft high
years and are being kept in op- cube (over 40% of which is third-
eration largely to avoid the ne- party leased through its interna-
cessity of buying replacement tional division) and Cronos over
equipment in this unpopular size. 10,000. The overall fleet had
The primary outlet for 40ft reached 208,000 units by the end
“standard” reefers is in the car- of 2008 and a further 25,000-plus
riage of bananas, where just two are estimated to be on finance
companies (Chiquita Brands and lease, mainly from Seacastle, but
Dole Ocean Cargo) make up the also TAL and Cronos.
customer base, but demand re- The newly delivered fleets of
mains largely stable. Textainer (6,000 TEU) and CAI
The residual fleet of such (4,500 TEU) comprise 40ft high
Capital Intermodal has added 10,000 TEU of reefers in little more than a year
equipment is controlled largely by cubes exclusively, whilst they ac-
GE SeaCo was the leasing industry’s biggest buyer of reefers last year
GE SeaCo, TAL and Triton, with count for virtually all of the
ward movement of energy prices Thermo King is reckoned to have the former claiming around 60% 10,000 TEU Capital fleet. A ris- new-generation Copeland digital two companies control just over
has, likewise, cut the cost of alu- increased its share to nearer 20%. of the total. Most shipping lines ing 2500 units are currently op- scroll compressor, and also offers 50% of the total leased fleet.
minium and insulation foam. At least two-thirds of all reefer have similarly shed their owned erated by Beacon and 1250 by enhanced power saving features
However, machinery prices bodies ordered by lessors in 2008 40ft x 8ft 6in reefer containers, UES International, which was (see WorldCargo News September Energy matters
have barely altered at all in the past were constructed by the market leaving them in possession of lit- formed from a merger between 2008, pp53-57). TAL also committed to a big in-
year, as increases in material costs leader, CIMC (China Interna- tle more than 10,000 units today. Unit Equipment Services AG and GE SeaCo has already ordered vestment last year, receiving more
were absorbed by the four main tional Marine Containers), with Most are held either by Chiquita Grand View Container Leasing further reefers in early 2009 to than 4,500 x 40ft high cube reef-
suppliers, all of which were en- approximately 25% built by MCI- or Dole, with the latter purchas- (GVC). take advantage of the competitive ers and 300 x 20fts for its operat-
gaged in their own private price Qingdao, operated by Maersk ing 4,500 replacement units in the Other smaller newcomers, pricing, high availability of factory ing fleet, and achieved some fleet
war. As a result, the “median” cost Container Industry, and the bal- past three years. such as Sea Axis, have similarly space and its own relatively good expansion as well. The majority of
per 40ft machine has remained ance by Shanghai Reeferco, part The leased 20ft reefer fleet is focused on 40ft high cube pur- access to funding. The fourth and its containers were again built by
close to US$8000 (equating to of Singamas Holdings. By com- distributed more widely, but is also chase. Moreover, with the conclu- first quarters are also usually the MCI-Qingdao.
below US$7000 for the lowest parison, CIMC’s share of global in decline. It numbered 40,000 sion of the CSAV business both peak period for reefer demand, TAL’s decision to major on
specification and more than reefer production in 2008 was units at the end of 2008. The big- Beacon and Capital will add a fur- which, although down, is by no Thermo King’s Magnum machin-
US$9000 for the most costly). below 60%, with MCI-Qingdao gest share - amounting to over ther few thousand TEU to their means non-existent. ery in 2008 contrasted with 2007
This indicates a current fin- taking a greater 30% - assisted by 10,000 or approximately 25% - is fleets as 40ft high cube units. As indicated earlier, a fair pro- when an estimated 85% of its to-
ished 40ft price of US$17,500 or its affiliation to Maersk Line - and controlled by Seacastle (mainly portion of GE SeaCo’s recent in- tal production of almost 10,000
less, although it almost exceeded Singamas 13%. from Carlisle), followed by Florens Leading the way vestment has gone to cover re- TEU was fitted with Carrier ma-
US$19,000 six months ago. The The corresponding split for (over 20%), Cronos (almost 20%) GE SeaCo committed to the larg- placement of older inventory, but chines, as had been the case in all
corresponding 20ft price is now world machinery deliveries appor- and GE SeaCo (15%). TAL and est purchase of reefer equipment the company’s fleet grew by a few preceding years when it used Car-
estimated at below US$14,000, as tioned almost 60% to Carrier, 17% Triton have been more aggressive amongst lessors in 2008, when it per cent in 2008 and is now of rier almost exclusively.
compared with US$15,000 at its to Thermo King, 14% to Daikin in reducing their exposure to the received more than 5,500 x 40ft comparable size to that held by TAL says the change was
peak last year. and 10% to Star Cool, supplied 20ft market and together have a high cubes and 500 x 20ft units, Seacastle. Between them, these prompted by the energy effic-
mainly to Maersk Line). little over 10%. valued at over US$100M, mainly
Breaking ranks Cronos is the only lessor to from CIMC factories.
The past year would appear to Rate pressure have made a significant investment This followed an even larger
have seen something of a shift in The combination of lower reefer in 20ft equipment in recent years, investment in 2007, covering
Unit45 diesel-electric
brand loyalty shown by certain prices and reduced demand has in- with other majors and some of the 19,000 TEU, which has only ever
lessors, with TAL switching in evitably brought further pressure newcomers individually buying a been exceeded by the purchase
2008 to the almost exclusive pur- to bear on per diem rates, although few hundred annually. Neverthe- of 24,000 TEU by Carlisle in
reefer ATP approved
chase of Magnum machinery from the average cash investment return less, 20ft reefers are still required 2003 and that undertaken by
Thermo King and GE SeaCo ma- is, at around 12%, largely static. for the carriage of hard frozen Maersk Line in most recent years.
joring on scroll compressor ver- However, this currently equates to commodities, where cargo weight The latter was also active in 2008,
sions from Carrier Transicold. a daily rate of US$6 or less per is critical, and shipping companies taking delivery of around 19,000
Many of the newcomers (in- newbuild 40ft high cube on five- maintain a stable owned fleet of x 40ft high-cube reefers from
cluding Seacastle) have also bro- year term lease and compares with around 110,000 units. Their MCI-Qingdao and CIMC, and
ken ranks with the leasing indus- nearer US$6.50 during the pric- former holding of 20ft insulated/ remains the largest owner of
try’s former virtual standardisation ing peak of last summer. porthole reefers has now been reefer equipment by a wide mar-
on Carrier NT ThinLINE ma- The 20ft rate continues to phased out completely. gin with a fleet of almost 400,000
chines, with their proven recipro- yield a slightly better return, as TEU.
cating compressor technology, by does the income generated from All-important GE SeaCo acquired both
investing in Daikin LXE-10E or older 40ft (8ft 6in) reefers, al- The all-important 40ft high cube EliteLINE and the latest
Thermo King Magnum machines, though this is primarily due to makes up more than 80% of the PrimeLINE scroll-platform ma-
as well as scroll-platform equip- the growing scarcity of such current leased reefer fleet, with its chinery from Carrier in 2008,
ment from Carrier. equipment sizes within the leas- share rising to almost 90% in TEU with upwards of 1,000 units
Carrier, which had been the ex- ing as well as the wider global terms. It accounts for an even big- PrimeLINE units leased recently
clusive supplier of reciprocating- reefer fleet. Their average utilisa- ger proportion of global invento- to several specific customers. The
compressor reefer machinery to the tion thus remains strong, at above ries and around 95% of all recent PrimeLINE features some con-
leasing sector until 2005, still met 90%, and is now probably higher investment has been in this size. struction and component differ- Dutch 45ft container specialist UNIT45 managing director Jan
at least 75% of total leasing com- than for the much larger fleet of The two biggest reefer lessors, ences to the more established UNIT45 has gained ATP approval
Koolen (right) points out the key
pany requirement in 2008 and 40ft high cube reefers. Seacastle and GE SeaCo, each EliteLINE model, including a for a new 45ft diesel-electric reefer
points of the new ATP-approved
container design, which will al-
diesel-electric reefer container to Rob
low it to compete head-on with
Boer of Thermo King
road trailers in the intermodal
Taking Charge As A World Leader
transport of perishable foodstuffs that could achieve the ATP’s FRC
in Europe over distances greater classification. This requires a high
than 150 km. level of insulation to enable goods
In Reefer Power Connections
A prototype unit was success- to be transported within a tempera-
fully tested by Agrotechnology & ture range of -20degC to
Food Innovations BV at its test- +20degC,” said UNIT45 manag-
ing facility in Wageningen in The ing director Jan Koolen.
Netherlands. Koolen believes that many
Although the ATP (Agreement transport operators will now
on the International Carriage of switch large portions of their busi-
Perishable Foodstuffs and on the ness from road to rail and sea.
Special Equipment to be Used for “There is considerable pressure on
Such Carriage) was drawn up by the transport industry to find
the Inland Transport Committee of green logistics solutions. Their
the United Nations Economic customers, producers of foodstuffs
Committee for Europe in 1970- and the major distributors and re-
71, this is believed to be the first tailers are all eager to be seen tak-
time that a container has met ATP ing steps that reduce their respec-
requirements since the now defunct tive carbon footprints,” he said.
Bell Lines operated an ATP-ap- Koolen notes that the practi-
proved fleet, including 45ft diesel- cality of moving reefer containers
electric units, in the mid 1990s. by rail between the Benelux and
Since the demise of the Irish Italy is already proven; UNIT45’s
shortsea operator, the market has diesel-electric containers carrying
been dominated by road trailers. commodities not requiring ATP
“Now that more and more certification, such as fresh fruit and
Reefer Power Connection Solutions for:
reefer containers are being moved vegetables, have been used on this
Container Terminals • Vessels • Reefer Repair Facilities • Gen-sets • Power Packs • Railroad
by rail over long distances, for ex- route for the past 12 months.
ample from Northern Europe to “Now we are providing the
Italy, our customers have been tool that will allow more perish-
ESL Power Systems, Inc.
pushing us to solve the difficult able foodstuffs to move inter-
2800 Palisades Drive Corona, CA 92880 USA
technical problems associated with modally, whether that be road/rail
(800) 922-4188 • +1 (951) 739-7020 • info@eslpwr.com • www.eslpwr.com
meeting the ATP requirements and, or road/rail/shortsea. We expect
in particular, to develop a container interest to be strong,” he said. a74
34 January 2009
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40