Making Sense Webinars

Emerson and Our Partners Giving Insight on the

Three Most Important Issues in Refrigeration
Agenda

What is a reefer container?

The reefer container operation challenge
Connectivity and infrastructure considerations
Examples of operational benefits
 Properties of a Reefer Container
Typical market price is around
17.000 USD for a complete
refrigeration unit with an
insulated container box
Typical temperature range
from -40 C to +30 C,
but special units
go as low as -60 C
Available as controlled
atmosphere units, with active
management of oxygen
Typical refrigerants used: R134a and R404a
and carbon dioxide levels
Average lifetime for
It makes 4 to
maritime use is
7 trips per year
1012 years
Regulated by ISO standards
for interoperability
Typical sizes: 40 ft and 20 ft
All models contain an
electronic controller
Average consumption is 3 to 4 kWh;
highly dependent on load and conditions
 Refrigerated Container Development
Yearly
Growth %
Growth in world merchandise trade and GDP

Average export growth

Continued growth on container
19932013
population and vessel sizes
Container ships carry about 75%
of the value of goods shipped via sea
Average GDP growth
19932013
Exports
GDP 1,000s Yearly New Build of Reefer Containers
Units
160
Source: WTO, March 2014 140

120
Yearly Deliveries Container Ships
400 100
350
Fleet Growth
>10t TEU 80
300
250 60
200
40
150 Replacement
100 <10t TEU 20
50
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Maritime Insight, Nov. 2013 Source: World Cargo News and others
 The Tough Life of a Reefer Container
Cargo Care Intermodal Shifts
Setpoints ranging Vessels, terminals, inland
from -40 C to +30 C haulage
Value of cargo ranging Requires special handling
from 50K$ to 1M$ and manual operations
Keep the cargo safe Various levels of
workmanship
Many responsible parties

Logistics
Delays and detours
Must run very energy
Severe Environment efficient
Ambient temperatures Must immidiately
Excessive handling report in case of any
Salt water malfunctions
Challenges With Reefer Container
Operation

Operating Margin, 2013 Global Shipping Liner Performance

70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Nov Dec Jan Feb
Source: SeaIntel, May 2014
Source: Alphaliner, April 2014

It is all about cost. In their quest for cost cuts it is

The whole industry is suffering, with collective
losses in the past fiscal year (2013) of US$1.5B
and a weighted earnings before interest and tax
ratio of just 0.4 percent.
Source: Thomas Knudsen, CEO, Maersk Line, May 2014
inevitable that service suffers. With the formation of
large alliances, there is a further commodisation of
the industrys services, and this can lead to port stays
that are sometimes extended over days.
Source: Tan Hua Joo, Alphaliner, April 2014
Cost Centers in a Reefer
Container Operation
0.9%
Margin
Margin
Vessel & Overhead Costs
Vessel & Overhead Costs
Handling Costs
Handling Costs
Reefer Trip Loading/Discharging 45.0%
Reefer Trip Connection Claims Costs
Reefer Trip Electricity
Terminal Monitoring Energy Costs
On Vessel Monitoring
Repositioning Loading/Discharging
PTI Maintenance & Repair
Dry Backhaul Loading/Discharging
Storage (Empty)
Capital Costs
Claims Costs
Claim Administration Reefer Cargo Claim Causation
Claim Pay Out
24.2%

Energy Costs
Vessel
GenSet
1.3%
PTI Maintenance & Repair
Labor 13.0%
Parts
Reefer Trip PTI
Reefer Trip Cleaning 5.6%

Capital Costs
Depreciation Reefer Unit 10.0%
Source: North of England P&I Association, July 2013
Source: Blue Canyon Marketplace Interviews, 2013
Trends Driving Pervasive Connectivity
More governmental requirements for
documentation and special treatment
of perishables
Continued focus on energy
consumption containerization, slow
steaming, special energy-saving
container programs
Air (Boing 747-400)

Road (heavy truck)

Rail (electric)

Rail (diesel)

Container ship
(>8000 TEU)
g/ton-km

Source: The Network for Transport and the environment

Higher customer expectations for M2M connectivity everywhere

fresh perishables with long shelf life GSM global coverage increasing;
Customers require more communication price declining
transparency
 Market Development on Connectivity

Strong indications of high penetration within next 34 years

Customer and application focus drives feature set

Shipping Service Providers (Carriers) Installed Base of Intermodal Container Tracking Units
1100
Customer Focus

1000
900
800
Solution 700
600
Providers 500
400
Shippers 300
Cargo Owners, 3PLs, 200
Freight Forwarders 100
Application Focus 0
2011 2012 2013 2014 2015 2016 2017 2018
Monitoring & Control Tracking & Security
Refrigerated Non-Refrigerated Source: Berg Insight, June 2014
 Connectivity Considerations
Global Global communication coverage
System Secure two-way M2M network Global
Interfaces to shipping lines logistics systems Monitoring
IT security compliance Web Server
24/7/365 hosting
Capable of big data

Installation costs
Vessel Market acceptance Local
System Compatibility with existing fleet systems Monitoring
Standardizations System

Container Ease of installation

Internal or external mounting
Interface to all manufacturers
Integrated SIM card
Technology lifetime
Compliance to regulatory bodies
Trip Example: United Nation Food
Program to Darfur

Unbroken cold chain is a challenge when bringing food into the Darfur
province to support its 2.9 million conflict-affected people.
Real-time Pervasive Connectivity
Smart Geozone Management

Geozone Management Adds Benefits

Monitors if the cargo follows the right route
Gets confirmation when the containers reach final destination
Automated on-site alarm handling to reduce container down-time delays
 Proactive Alarm Attention

Shipping line
administrator
sets up alarm
severity
Shipping line administrator sets up
email respondents for each alarm
group and depending on geozone

Field person Field person

receives email responds with
notification help from app
Advanced Event Handling
G-force registration Temperature deviations from setpoint
4G

Alert by prolonged power OFF periods Unexpected change of setpoint

Temp. Supply Return

Date Power Setpoint Temp. Temp.
21-09-12 23:56 ON -16 -19.6 -15.7
21-09-12 22:58 OFF to ON -16 -21.0 -15.4
21-09-12 22:10 ON to OFF -16 -14.1 -15.3
21-09-12 21:41 ON -16 -14.4 -15.1
21-09-12 20:41 ON -16 -21.7 -16.6
Going From Trip to Fleet Perspective

Using data across the fleet

Spot and analyze trends, patterns and anomalies
Improve operation in more areas than trip specifics

Source: IBM, 2014

 Improving Shipping Line
Operational Efficiency
Shipping
Line

Revenue Capital Costs Energy Costs Maintenance Costs Claims Costs Handling Costs
Enable shipping Increase reefer Reduce cost by Reduce Reduce claims Reduce manual
line to charge container remotely unnecessary administration handling by
premium for utilization controlling terminal PTI costs by allowing centralizing data
providing end to through better economy mode repair costs by remote access to log downloads
end reefer knowledge of setting performing information and firmware
container fleet location and remote health upgrades
monitoring data use Analyze checks and Reduce claims
to customer performance of determining if incidents through Optimize reefer
Increase useful reefer container repair is early warnings monitoring cost
life or residual fleet and identify necessary and predictive by centralized
value of reefer poor performers maintenance response center
container through for maintenance Reduce capability
improved or retirement maintenance
maintenance and costs through
health analysis predictive
maintenance to
avoid major
component
failure and repair

Source: Blue Canyon Marketplace Interviews, 2013

Example 1: Smart Firmware Update
Thermo King

Smart Firmware Update

Improved insight and management

Central approval of new FW
Automated distribution of new FW

Reduce handling costs

Reduce roll-out time of new FW
Avoid human errors
Example 2: Need-based PTI

Reduction of pre-trip inspection, handling and labor costs

Increased utilization
 Applications Drive Value
Equipment Maintenance Energy Efficiency
Automation of

Predictive Maintenance Need-based PTI Energy-saving Modes Energy Cost Analysis

Processes

Smart Firmware Update Trip Reports Energy Calculation Energy Efficiency Benchmark

Operational Efficiency Cargo Care

Alarm Management Utilization Optimizer USDA Server Interface Supervised Cold Treatment
Trip Setting Verification Accountability Reports Customer Real-time Interface Customer Post-trip Analysis

Basic Functionality Infrastructure and Data Hosting

Search Functionality Secure Data Hosting, Maintenance, Backup
Condition Overview of All Parameters Years of Data Storage
Remote Commands Global Roaming Coverage
Historic Logs and Export Functions Secure M2M Network
Questions?

Contact Info:
Robert Svensson
Marketing Manager
Emerson Climate Technologies
Transportation Solutions ApS
+1 45 7023 4444
Robert.Svensson@Emerson.com
http://www.emersonclimate.com/ts

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