The bankruptcy of Hanjin Shipping on Aug.31 has given a big damage to not only customers, harbor suppliers, terminal companies, the masters of chartered ships but the lease companies supplying them with containers. Particularly the major lease companies have leased them a large quantity of containers. They were the shipping company proud of a big scale of No. 7 in the world. As a result, No. 1 supplier who has supplied them with close to 200,000TEU will have to run around to recover their containers in the world. The recovery cost will be considered to be nearly $100 million including the outstanding lease charges of Hanjin Shipping. After Lehman shock there was once a rumor that they might go bankrupt but it was hard believed because they were No. 1 Korean shipping company. The lease companies with the financial power who seemed to deny such uneasiness had increased on-lease quantity to Hanjin Shipping like fillng the gap that an existing major lease companies hesitated to do. Most major lease companies except several companies have suffered serious damage. In the historically lowest rate of long terms and master lease the bankruptcy of Hanjin Shipping might cause the trigger of further reorganization of the major lease companies.
Maersk Line, the leading shipping company in the world seems to be looking for a shipping company to take over to increase the market share. When Hyundai Merchant Marine (HMM) joined 2M the rumor spread that Maersk Line might buy HMM but it was learnt that they intended to target at the different shipping company. Their strategy is to wait till just before a shipping company in target go bankrupt and to start the buyout negotiation so that they could minimize the purchase cost of shipping line and they could attain to increase their market share. They will need a considerable financial power if they should cut the slot cost by larger containership and if they should buy out another shipping company in order to survive in the market. Is there any other ways for shipping lines to survive in the market?
How about paying attention to container itself once again? I have suggested this before. The current shape of container (loading and unloading from the back door) is to structurally seek safety and strength in a low cost which could stack up 7~9 containers in the hold of the containership but as a matter of fact it would be a big problem to load and unload narrow and dark inside especially for heavy cargo. It takes time to load and to unload. In that respect one of our agency product, Sliding Door Container patented by Future Box Corp (FBC) could give the efficiency of loading and unloading drastically with 2~3 forklifts to use at the same time because it is the side open container. Besides, the whole is clear at a glance, and you look around it and you could load and unload safely. It would be a big impact for customers if the shipping company could provide them with all Sliding Door Containers? You could raise the power of competitiveness with far lower than the upsizing investment of the containership if you could adopt it?
Many shipping companies move their gravity in the reefer container which could be expected high freight rate. Under fierce competition environment the investment mind of the reefer container does not decline and the following shipping companies have reinforced the reefer fleet including replacement even this September.
Hapag-Lloyd 5,750 units (5,000x40f HC, 750x20f)) delivered in Oct.
Maersk Line 14,800 units within this year
NYK 4,700x40f HC from this year to early next year.
Here is a big problem. As for the current refrigerator, R134a is mainstream now. R134a Unit Makers (Daikin, Carrier, StarCool) are groping for the substitute refrigerant. They could not use the existing unit even if they could find a substitute refrigerant. It is necessary to purchase a new unit if shipping company use it. Production of R134a has been regulated so the purchase price of R134a gradually moves up and it is expected that Maintenance expense rises.
On the other hand, we act as the agent of Thermo King. Their product of Magnum Plus uses a refrigerant R404a. They recommend R452a as the substitute refrigerant. As for the cooling capacity R452a has ability to freeze – 40 degrees Celsius. R134a unit could attain only max to -30 degrees Celsius. R404a of Magnum Plus is free from the regulation of Cop21. Therefore it is not necessary to replace R404a hastily with R452a. Compatibility with R404a and R452a is good. The existing Magnum Plus can just use R452a. The use in Mix of R404a and R452a is possible. There is the advantage that a price falls down when production of R452a increases because it is used in many trucks of the land field.
Unit of Magnum Plus is structurally simple and strongly built. Therefore, there is few repair cost. The compressor made by aluminum can endure long usage and strongly for rust. There is few in the gas filling number of times of R404a R4041. As for this, many Reefer container service dealers testified it.
<Characteristic of Magnum Plus>
- Highest Cooling Capacity –―> it shows its real worth in the place that outside of temperature is high and it could cool down even 10 years old box – 40 degrees Celsius in 6 hours.
- Widest Operation（+30℃ to -40℃）―> it gets a high evaluation, trust from the ice cream makers and others.
- Tight & Accurate Temperature ――> Temperature management of – 0.1 degrees Celsius is possible about Chilled Cargo.
- Fast Pull-down ――> it has a power so that it reaches to the setting temperature in a short time. As a result, it is the saving of labor as it keep designated temperature in good time.
- Lightest Machinery Weight ――> it is about 80 kg lighter than other makers. The lighter unit is very important to cope with upsizing of the containership. It will contribute to the labor saving of the containership very much.
- Lowest Energy Consumption ――> it is energy saving eventually from the points mentioned above through life of Reefer container.
In conclusion I am confident that you could win competition with overwhelming competitiveness in the Reefer industry and could contribute to the profit of your company to great extent in the future if you adopt Magnum Plus by a small challenge, which is lightweight, sensitive temperature control but have a powerful cooling capacity.
New container price in China is $1,400 per 20f and the new one of water-soluble paint is about $100 per 20f higher. The number of new containers in China factory is 640,000 TEU at present. Total fleet of Hanjin Shipping seems to be temporarily disappeared from the market so that it might give a slight tight feeling of container availability in the market? However, container demand for the peak season of the Christmas trade in the North America has already passed. Therefore, hardship against the lease company would continue for a while as it is toward winter of the slow demand of container.