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I N S I D ETaking The Guess Work Out of Fresh Air Exchange . .Page 5Recent COSCO Purchase Furthers Thermo King’sExposure in Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 6Superior Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 7

A Strong Commitment . . . . . . . . . . . . . . . . . . . . . . . . .Page 8P&O Nedlloyd Commits to Power Saver Units . . . . .Page 10Puccetti Day? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 11Introduction Time, Hans Bax . . . . . . . . . . . . . . . . . . .Page 12

onehotcommodityonehoBroccoli. A great source of Vitamin A,calcium and riboflavin, the floweringgreen vegetable is also one of the mostsensitive to ship.

“Broccoli respires exceedingly fast,”explained Dr. Patrick Brecht,president, P.E.B. Commodities, Inc.“The amount of heat the productgives off is enormous – 35,000 BTUsof heat per ton per day at 5 degrees C(41 degrees F), which is the averagetemperature inside a home refriger-ator. For perspective, broccoli respiresfive times faster than crisp headlettuce and 70 times more thanmany other fruits and vegetables.”

Yet, despite its delicate nature, anamazing 150 million pounds ofbroccoli are transported to Asiaannually. continued on page 2

A publication for the seagoing container transport temperature control industry. Spring 2001

1. Pre-cooling 2. Iced Packing

In the United States, Americans are eating900 percent more broccoli over the past 20years – a testament to the power of the

American Cancer Society, who proclaimedbroccoli an anti-cancerous food. In

1970 consumption of broccoli wasonly a half-pound per person.Today, the average American eatsfour and one-half pounds a year.

Once again, this appears to be ahealth trend Americans have had

to learn from their Asian neighbors.Long a popular vegetable on Japanese

dinner tables, broccoli imports into Japannow average 74,000 tons a year – the bulk ofwhich is imported from the United States.Considering that the average voyage betweenLong Beach, California, and Tokyo is 16 days,strict temperature management is crucial.

“The key to shipping broccoli is to retainpackaged ice and keep it from flowering, fromturning yellow,” said Dr. Brecht. “The Japaneseare very exacting consumers. They will buyonly the freshest ingredients. They considercolor when purchasing produce because thecolor of the product is an excellent reflectionon overall product quality.”

Since the vast majority of Japan’s broccoli isimported, exporters and shipping lines suchas OOCL have long concentrated on ways to

increase shelf life. For obvious reasons,shipping lines want to deliver the highestquality product. In optimum conditions,broccoli is pre-cooled to about 0 degrees C(32 degrees F) by hydro-cooling and packedin ice as soon as possible after harvest. Formedium- to long-distance shipping withoutatmospheric modification, refrigeratedtransportation and package icing areabsolutely essential. (Approximately 21 to 25pounds of crushed ice should be placed ineach carton before shipping.)

“Often, even under the most exactingconditions and with precise temperaturecontrol, broccoli can become dehydrated,”said Dr. Brecht. “In some cases, we’ve evendocumented where the cool air circulatedfrom a refrigeration unit actually contributesto dehydration simply because of strong aircirculation. The cool air flowing over the topof the product pulls moisture away.”

While today’s reefer containers havedramatically increased a perishable product’sshelf life, Thermo King felt there was stillroom for improvement. “We were troubled bythe fresh air exchange,” explained Steve Bryant,global director product marketing – container.“We know that fresh fruit and vegetablesrespire. They consume oxygen while releasingcarbon dioxide. Our standard refrigerationequipment can do only so much in regards to

internal atmosphere. Shippers are required tomanually open the fresh air exchange door atthe beginning of the voyage in order to releasecarbon dioxide. We wanted to find a way tomonitor O2 and CO2 levels throughout thevoyage and modulate the fresh air dooropenings. We felt that if we could, the resultwould be a higher-quality product.”

To combat the conditions inside the containerbox throughout the voyage, Thermo Kingdeveloped AFAM and AFAM+, AdvancedFresh Air Management. AFAM can beprogrammed to delay the fresh air vent openingfor up to 72 hours. This allows the container’sinterior temperature to reach proper set pointbefore the container is ventilated. As a result,product temperature pulldown can be reachedin half the time it would take with the ventalways open. The end result is longer productshelf life.

To prove it, Thermo King, in conjunctionwith OOCL, ran a side-by-side trial this pastFebruary. Two identical OOCL containerswere used, both equipped with Thermo KingCSR-40 refrigeration units. The onlydifference between the two containers wasthat one of the Thermo King units hadVFD (variable frequency fan drives) andAFAM+ and the other container did not.

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“We were really curious to see if AFAM+ andVFD would make a noticeable differencewhen shipping broccoli over an extended in-transit time. Other trials had provenextremely successful,” explained Bryant. “Weknew the VFD would result in energysavings; however, the unknown variable wasthe AFAM+. Would the load be fresher uponarrival? It made a difference with othercommodities; however, this was the first trialwith a product that respired so quickly, andover such an extended voyage.”

The trial began on February 4, 2001, with thestuffing of the two OOCL containers inYuma, Arizona. The broccoli was boxed,hydro-cooled and packaged with ice in linewith current broccoli shipping practices.Both refrigeration units were set at 0 degreesC. The fresh air exchange on the standardunit was set at 45 cfm (cubic feet per minute)exchange rate. The AFAM+ unit was set tobegin air exchange after the CO2 levelreached 6 percent, or the O2 level reduced to8 percent. The VFD was set to a minimumfan frequency of 20Hz.

“We wanted to optimize the refrigeration andhigh humidity until the CO2 reached anappropriate level,” said Bryant. “In addition, weactivated VFD to see if the airflow over theproduct would maintain temperature controland a difference in moisture retention in the

broccoli. Our belief was that VFD would helpthe product maintain moisture. If all that wasn’tenough, we also attached power meters to bothunits to determine the power savings in usingboth VFD and AFAM+.”

Both containers were hauled to Long Beach,where they were loaded on the OOCL HongKong on February 5, for shipment to Hakata insouthern Japan. The entire voyage ended uptaking 22 days.

“Twenty-two days at sea is a real test of productquality management,” said Dr. Brecht. “That’sa long time to not only maintain precisetemperatures but to balance internalatmospheric conditions. Keeping the producticed is critical in Asia, simply because in someinstances, the infrastructure or resources atdestination countries don’t exist to keepperishable products refrigerated once theproduct is landed and removed from arefrigerated container. Twenty-two days waspushing the envelope a bit. To vary twodegrees, or even one degree, in temperaturecould potentially damage the marketability ofthe product.”

When the containers were finally opened,the results were remarkable.

3. Container Loading 4. Expected Quality 5. Exceptional Quality

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“First off, I noticed the ice pack,” said Dr. Brecht.“Both containers maintained an excellent icepack. Upon closer inspection, however, thedifferences were dramatic. Just by looking at thebase of the stalk, the cut surface, you could seethat the product in the AFAM+ container wasmarkedly better. It was fresher looking.Conversely, the broccoli in the other containerhad clearly experienced some water loss. In bothcases, however, the product was very goodquality. There was no flowering or signs of decay.”

Four days into the voyage, the CO2 levelsinside the AFAM+ box – where the fresh airexchange door was closed – reached the setceiling of 6 percent. At that point, theAFAM+ system worked precisely by openingthe fresh air exchange door enough to allow

O2 into the box. The internal atmosphere wasreturned to ambient levels until the containerswere trans-shipped in Kobe.

“This is critical, for the product was heldwithin ideal temperatures during the mostcrucial time, immediately following harvest.We’ve found, in other tests, that shelf life isnegatively impacted when the producttemperature isn’t down to 0 degrees C (32degrees F) as soon as possible. Once 0 degreesC is reached and the broccoli is loaded into thecontainer, the O2 and CO2 levels inside thecontainer become an issue,” said Dr. Brecht.“Shipping perishable products is really a two-step process. The product must reach the settemperature as quickly as possible after harvest.Then, in the next step, shippers must closelymonitor the effects of respiration. It allcontributes to shelf life.”

While the AFAM+ caused the fresh air exchangedoors to open four days into the voyage,temperature control remained excellent on bothcontainers for the entire trip to Hakata.

“We really couldn’t have asked for a betterresult,” said Bryant. “Not only did AFAM+work flawlessly, but our power metersdemonstrated a 33 percent power savings on the

unit with AFAM+ and VFD. This is truly a win-win situation. Not only did we dramaticallyincrease shelf life, but we also demonstrated asignificant decrease in power. Customers usingthis technology will not only save money inoperating costs, but they will deliver higher-quality products to their customers.”

While it is important to hear the official results,the bottom line rests with the shipping line.Did OOCL see a value?

“This is exciting. We believe AFAM and VFDcan open up another quality level for vegetablesand fruits, OOCL is committed to recognizeneeds of our customers to provide continuousimprovement in both freshness and longershelf life for chilled shipments. Thisenhancement in technology will allow ourcustomers to trade their products at highermarket value and profitability,” said AlfredCheung, OOCL director, reefer trade.

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AFAM+ AFAM+ with grill openStandard Fresh Air Exchange

Dr. Patrick Brecht, president,P.E.B. Commodities, Inc., (right)discusses test results with OOCLpersonnel.

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It’s no secret that establishing the correct air exchange foryour cargo during transit is a key to optimum productlife. Until recently, controlling the fresh air exchange onrefrigerated containers was not only a manual operation,but it involved some guesswork as well. Thermo King’sAFAM – Advanced Fresh Air Management – will changethe way you protect your product.

Thermo King surveyed the market to better understandthe ventilation requirements of the full range of perishableproducts transported in refrigerated containers. We foundthat a need exists for products to protect the cargo beyondtemperature and humidity, but without adding significantcost and complexity. Customers need a simple productthat addresses the full range of perishable products cost-effectively. Thermo King’s AFAM and AFAM+ optionsare two patent-pending products to meet this need.

AFAM can be programmed to delay the fresh air ventopening for up to 72 hours. This allows the container’sinterior temperature to reach proper set point before thecontainer is ventilated. As a result, product temperaturepulldown can be achieved in half the time it would takewith the vent always open. The benefit: longer shelf life.You save hours in pulldown and gain days in producttransit life.

If you’re looking for advanced protection, AFAM is alsoavailable with a “ventilation on demand” feature. AFAM+is equipped with intelligent sensors that measure oxygenand carbon dioxide levels in the container. When levelsgo out of the programmed range, the microprocessorautomatically adjusts the fresh air exchange rate to managesafe gas levels. Continual product respiration dictates thefresh air exchange cycle, and the microprocessor opensand closes the vent as needed to achieve acceptable gaslevels and minimize the intake of unnecessary outside air.This system helps to ensure consistent product qualityby adding intelligent control of the ventilation process.

Power savings with VFD

O2 and CO2 control

Excellent temperature control

Taking the Guesswork Out ofFresh Air Exchange

THE PROOF

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As Humphrey Bogart said, “This could be the start of a beautifulfriendship.”

The China Ocean Shipping Company (COSCO) became a newThermo King customer last November when the company agreed to lease300 Thermo King CRR-40 Power Saver container refrigeration units.Since then, COSCO, China’s biggest shipping firm, has leased anadditional 1,000 units, with plans for more in the future.

“While COSCO management believed in the reliability of ourequipment, our outstanding global network for parts and service waswhat secured the order,” said Bob Johnson, Thermo King vice presidentand general manager, Container Division.

In addition to daily telephone conversations, Frank Chen, Thermo King’sdirector of container sales, China, visits COSCO once a week. “For a newsupplier, such as Thermo King,service is critical. We have a verygood team working together toprovide first time and first classservice to COSCO,” explainsChen. “Our customers cannot tolerate a failure. One reefer container maytravel to every port in the world. Our service managers must look aftereach and every unit. They need to know exactly what COSCO expects,no matter where in the world they are located.”

COSCO’s Technical Manager, Jiang Min-De, says the Thermo Kingorder was also a result of lower operating costs. As Chen explains,COSCO was conscious of the bottom line. “The power savingsadvantage of the CRR-40 units, combined with our established globalnetwork for parts and service, is what got us in the door,” he says, adding,

“Offering less fuel consumption and low maintenance costs, our units cansave COSCO a great deal of money. It’s the same thing all the globalshipping lines are looking for.”

The November leasing agreement was arranged through TransAmericaLeasing, the world’s largest leasor of intermodal transportationequipment. In February, COSCO decided to lease an additional 1,000CRR-40 units, 500 of which are being supplied by Carlisle Leasing and500 supplied by Cronos Leasing. The new units will be delivered inMarch and April.

Spawned by China’s Ministry of Communications in 1961 andincorporated in 1993, COSCO comprises of more than 300 domesticoperations and 362 overseas offices. The company’s fleet consists of 600modern and multifunctional vessels of various kinds, aggregating 17million dwt with a total annual capacity of over 100 million tons.

COSCO’s Container TrafficDivision, established in 1993,operates a fleet of about500,000 TEUs, leased from

COSCO Pacific, the sixth largest container leasing company in the world.The frequency of COSCO’s container service has increased to 300sailings per month, centered in China, with nearly 60 container lineshaving been inaugurated.

New opportunities abound as COSCO continues to follow the globalmarket trend by increasing its supply of refrigerated containers. Thecompany signed an agreement last February for the building of threereefer container vessels, with hopes for having the vessels delivered andput into operation by the end of August 2001.

Recent COSCO Purchase FurthersThermo King’s Exposure in Asia

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Superior Service“We have a Global Cold Line for all our customers; however, my cell phone is anotherCold Line for COSCO,” explains Frank Chen, Thermo King’s director of container sales,China. Such 24/7 dedication is just what it takes to keep today’s shipping lines happy.

“Our customers need to contact us at any hour, anywhere in the world,” explains Chen.“We must be accessible. They rely on Thermo King for much more than new reefer units.They rely on us for commissioning, parts supply, warranty, emergency repairing, training,etc. We’re constantly communicating. Business never stops. Or sleeps for that matter.”

For a new customer such as COSCO, Thermo King conducts frequent and in-depth training.“We conducted three trainings for COSCO last year,” said Chen. “One in Shanghai forCOSCO’s vessel crew, one in Shanghai for COSCO’s depot technicians and office personneland one in Qingdao for people in that depot and COSCO’s Qingdao office. We’ll conductfour more training sessions throughout 2001 as well.”

While extremely familiar with transport refrigeration, COSCO’s technicians require specifictraining focused on Thermo King unit operation, MP3000 controller, troubleshooting, systemand electrical diagnosis, and emergency codes.

To back up COSCO’s technicians, Thermo King has 13 service dealers located throughoutChina and 430 service dealers globally. Training is a constant for them as well. (In Chinaalone, four training sessions are scheduled in 2001.) The bulk of these sessions focus on newtechnology – the microprocessors that diagnose the refrigeration and electrical systems.

“Once you go through the training course, it’s really very easy,” said Chen. “The newtechnology makes it so much easier to diagnose. Potential problems are alleviated thoughautomatic pre-trip before cargo is loaded. You only need to press a button.”

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Cronos Leasing recently demonstrated a strongcommitment to reefer containers by purchasingnew equipment. A shift in focus, considering

the global leasing company previously investedprimarily in dry vans, tanks and dry freight specials.But that’s all changing now.

“It’s a great time to be in the reefer container leasingbusiness,” explained John C. Kirby, Cronos seniorvice president, operations. “All the bugs have beenworked out – refrigerant issues have settled downand the machinery is reliable and easy to maintain.Plus, the market has really taken off. We’ve seen adramatic increase in reefer demand in the last year.We’re now seeing large deals for reefer containers andwe can compete.”

Cronos competes by offering state-of-the-art reefercontainers, equipped with Thermo King CRR-40Power Saver Series container refrigeration units.

“We provide what the customer wants,” explainedColin Jacobs, Cronos director, refrigerated containers.“We constantly have to be conscious of what theshipping lines require. And they want the mostadvanced technology that’s also reliable. Ultimately,today’s consumers demand high quality perishablegoods. We all want to go to the store and purchaseperfect bananas or apples, or whatever. Today’sconsumers won’t tolerate damaged perishables.Consequently, the shipping lines won’t either.”

With an entire fleet of 397,000 TEU, the diversifiedCronos fleet of dry cargo, refrigerated and otherspecialized containers is leased to a customer base ofapproximately 450 ocean carriers and transportoperators globally.

Already this year, Cronos has delivered 500 reefercontainers equipped with Thermo King CRR-40units to COSCO. “Our customers are asking forThermo King,” said Jacobs. “From a technical stand-point, we are happy with Thermo King. We wouldn’tsupport it if we weren’t.”

The deal works from Thermo King’s perspective aswell. “Cronos is a great company to work with,” saidRon Roberts, Thermo King vice president, globaldirector of container sales. “They offer the world’sshipping lines top-shelf equipment and back it withsophisticated systems. They take great pride in whatthey offer and the services they provide. Thermo Kingis proud to be their partner.”

A STRONG COMMITMENT

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P&O Nedlloyd Commits to Power Saver UnitsP&O Nedlloyd, the world’s second largest shipping line, recently signed an orderfor 3,000 40-foot high-cube reefers, all equipped with Thermo King CRR-40 PowerSaver container refrigeration units, with the option to purchase another 1,000Thermo King Power Saver units later this year.

The equipment, delivered in first quarter 2001, willbe used throughout the world in P&O Nedlloyd’sfleet of over 48,000 reefer containers. The companytransports some of the most temperature-sensitiveproducts – from ice cream to avocados to flowerbulbs – in the most arduous environments.

“P&O Nedlloyd has built a specific expertise in itsability to ship chilled New Zealand lamb to theUnited Kingdom,” explained Bob Johnson,Thermo King vice president and general manager,Container Division. “The journey takes 31 daysand the lamb is maintained within 0.4 degrees C(0.7 degrees F) for the entire trip. It’s arguably one ofthe toughest routes in the world, since the reeferequipment must maintain precise box temperaturesunder constantly changing ambient conditions.”

Thermo King’s CRR-40 Power Saver unit, equippedwith the MP3000 controller, consistently maintainstemperatures within the tightest band of any refrigeration equipment in the industry.The proprietary software in the controller makes it the easiest controller to operate,read and service in the industry today.

Puccetti Day?One discovered the New World; the other learned how to efficiently navigate it.

Genoa, Italy, is home to two innovative journeymen: Christopher Columbus and EttorePuccetti, founder of Thermocar. A former truck driver who started the transportationcompany in 1966, Puccetti would haul ice cream from Southern Italy to the north.Believing there was a better and more efficient way to transport goods, he started a smallcontainer transportation line with 20 container boxes.

With nine full-time employees, Thermocar now delivers, among others, dairy, meat,medicine and chemicals all over the Mediterranean, Africa and Middle East. As recently as1999, Thermocar transported 12,000 tons of perishables, utilizing over 1,000 reefer TEUs,385 trailers and 280 containers equipped entirely with Thermo King units.

The relationship with Thermo King began at Thermocar’s inception. Familiar withThermo King’s reputation for quality and established global network of dealers, Mr.Puccetti purchased various reefer units for his trucks, trailers and containers over the past35 years.

Nowadays Thermocar operates a total of 280 Thermo King units, some up to 25 years oldbut still in perfect condition. All units meet present transport requirements and are equippedwith either partlow writers, data loggers and/or humidity control.

Puccetti’s son, Federico, who joined the company in 1981, credits the units’ longevity not onlyto their own extensive maintenance program but also to the open access to Thermo King’sinternational service technicians. “I would often explain a situation over the phone” explainsFederico Puccetti. “If necessary, a part would be sent to me immediately. Other times, personalvisits were involved.”

With round trips often taking 60 days or more, Thermocar’s first criteria is reliability andefficiency. As Leo van Beek, Thermo King’s director of container sales in Europe, explains,“Adding benefits of low unit weight, high capacity and significant savings on powerconsumption, we realized that hermetical scroll units were the most efficient solution forThermocar. This subsequently led to Thermocar’s recent decision to add such units to theirconstantly growing Thermo King refrigeration fleet.

(Left to right) Leo van Beek, Thermo King’sdirector of container sales, Europe; FredericoPuccetti, Thermocar; and Eric Breddles,Thermo King service manager, Europe

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20/40 is published for the seagoing container transport temperature control industry by Thermo King Corporation.

Executive Editor: Randal Gast Editors: Joe Cretella, Kimberly Thorsen; Managing Editor: Jackie SingerContributing Writers: Shannon O’Neill, Krista Forsberg

Published by Thermo King and Kerker.

20/40, Thermo King Corporation, 314 West 90 St., Minneapolis, MN 55420-3693, 952-887-2532

For more information, contact Jackie Singer at 952-835-7922, or e-mail at jsinger@kerker.com. www.thermoking.com

©2001 C Printed on Recycled Paper

The newest member of Thermo King’s Container Division is Hans Bax. He brings solidindustry background, technical expertise and a history of successfully building customerrelationships to his new role as Thermo King service manager. Based in Rotterdam,Netherlands, Bax will be responsible for building and managing customer servicerelationships in the Middle East and throughout Europe.

Prior to joining Thermo King, Bax was a service manager for Mitsubishi Heavy Industries.His service territory was Europe, Africa and the Middle East. His fourteen years ofexperience also includes employment at IBK Compac, which specializes in industrialapplications of heavy-duty refrigeration machinery, as a sales design engineer and at StorkRefac, a commercial air conditioning equipment manufacturer, as a sales engineer.

“I’m excited to join Thermo King because it’s pushing the limits with technology forcustomers,” said Bax. “The Thermo King service team is a highly skilled group. Theyhave the field experience to help customers quickly and efficiently.”

As a service manager Hans will spend 50 to 60 percent of his time on the road visitingcustomers. The regular visits are designed as check-ins to see that equipment is operatingproperly, offer ongoing on-site customer training and explain new product innovations.

“Service is the first step in growing the customer relationship,” said Bax. “As a servicemanager you get to know customers and learn what their challenges are, and with thatinformation, can help them better achieve their goals.”

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