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REEFER INDUSTRY
WorldCargo
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Reefer machinery builders scroll ahead
Producers of reefer container machinery
have rarely been as busy
as in recent years as they have
strived to meet a sizeable and sustained
year-on-year growth in demand.
Annual production of reefer machines
has increased by almost 10 per cent on
average during each of the past five years,
boosting output from around 50,000 machines
of maritime build in 1999 to almost
80,000 last year (see Table 1). The
forecast for 2005 is around 86,000, depending
on the performance of the reefer
industry during the final quarter.
All four established reefer machinery
producers - Carrier Transicold, Thermo
King Corp, Daikin Industries and
Mitsubishi Reefer - benefited from
record orders during the opening half of
2005, when over 45,000 units are reckoned
to have been delivered.
This longstanding quartet has been
joined by a newcomer in the shape of
Maersk Container Industri (MCI), which
has carried out its first series manufacture
of the new StarCool machine
launched late in 2004 (see WorldCargo
News November 2004, p60). Around
1500 units are due for construction this
year at MCI’s reefer factory in Qingdao,
all for sister company, Maersk Sealand.
No third party sales are planned as yet,
until the units are further field tested and
a more comprehensive after-sales network
has been established.
Picking up
Reefer demand only slackened slightly
throughout the summer months, allowing
manufacturers some time for staff
breaks and routine maintenance, and it
is expected to pick up again in the fourth
quarter. In this respect, the refrigerated
container market is currently holding up
more strongly than its dry freight counterpart,
while the outlook for reefer demand
remains upbeat for 2006 as well.
Output has been driven up most recently
by shipping lines, which directly
purchased roughly 70 per cent of all
reefer boxes produced in 2004, equivalent
to over 55,000 units. They are expected
to take an even higher share (75
per cent or greater) in 2005.
Production for leasing companies last
peaked in 2003, with these buyers taking
far fewer in the two years since. The
inexorable shift towards the 40ft high
cube reefer has continued as well, with
over 85 per cent of all new machines now
fitted into containers of this size. The
balance goes for 20ft end-use. As such,
there has long been a decreasing tendency
on the part of some machinery
suppliers to offer a separate 20ft model,
while the former price differential (of a
few per cent) existing between machines
of 20ft and 40ft size has shrunk to almost
nothing.
Carrier still produces a specific 20ft
model, while most other suppliers usually
advise the fitting of their 40ft machinery
to 20ft reefer bodies. This offers
the benefit of a proportionally higher capacity
rating, which is often desirable as
20ft equipment is still predominantly
used to carry deep frozen perishables,
requiring high performing refrigeration.
With close to 50 per cent of reefer container
units now equipped with scroll compressors,
and the recent scaling up of production,
machinery prices have been forced down to
their lowest level in many years
Price drop
Despite the strength of demand, machinery
prices have generally fallen in recent
years and are today at a very “competitive”
level. Models of the most basic type
can currently be acquired for less than
US$8000, assuming a sizeable order run,
and it is rare now to pay over US$8500-
9000 for any design, even when various
add-ons (such as controlled atmosphere)
are included.
This compares with the US$9000 or
greater paid on average two or three years
ago. Naturally the recent weak US dollar
exchange has helped hold down the prices
of some components, while the earlier reentry
into the market by Daikin, plus the
intensified competition existing between
Carrier and Thermo King, have also
played their part.
The recent relocation of production
by Carrier and Thermo King, respectively
to Singapore and China, has further
helped to force down manufacturing
costs.
Conversely, as the price of reefer machinery
has fallen, the average cost of a
refrigerated body shot up between 2003
All over the world
Antwerp
Dubai
Genoa
Gothenburg
Hamburg
Hong Kong
Lisbon
London
Madras
New York
Rio de Janeiro
San Francisco
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
and 2004, due largely to a sharp rise in
the cost of stainless steel and foaming material.
A 40ft high cube reefer of standard
build increased by over US$1000 in
the year to late 2004, to top US$9000,
although this figure has since dropped
back again to below US$8500.
Scroll impact
The increased uptake of “scroll-platform”
machinery, which features a single
scroll compressor in place of the more
traditional reciprocating version, has also
had an impact on finished machine
prices. Scroll compressors have fallen rapidly
in price as they have become more
commonplace, while their operational efficiency
has improved. The use of a scroll
compressor can also cut machinery
weight and dimensional size.
Table 1: Summary of recent maritime
reefer container machinery output
Year Total R134a R404A Other*
Units (%) (%) (%)
1999 51,000 82.5 7.5 10.0
2000 55,500 86.5 7.5 6.0
2001 52,500 90,5 8.5 1.0
2002 65,500 91.0 9.0 -
2003 71,500 89.5 10.5 -
2004 79,000 88.5 11.5 -
2005** 86,500 87.0 13.0 -
*Mainly R22. **Projected at third quarter
A growing number of shipping lines
have switched to specifying scroll com-
Cronos Reefers
A robust and corrosion-resistant design – with genuine global support
• Featuring Carrier and Thermo King machinery
• Construction materials to suit customer requirements
• Maximum allowable cargo capacity
• Long term warranties – up to 5 years
• Available in 20', 40' and 40' High Cube
• Available for master, operational and term lease or sale
Contact your local Cronos office or visit
www.cronos.com
Global service support in all
major port locations
See us at
Intermodal Transport
& Logistics – Stand D48
Bilbao, Spain
8-10 November 2005
September 2005 47