2014 Q1 - Integrated Reefer News

2014 Q1 - Integrated Reefer NewsIntegrated reefer NEWS First quarter 2014 In good shape By Soren Leth Johannsen, Chief Commercial Officer 2013 ended on a more positive note than had been anticipated throughout most of the year. An early estimate shows that total market volumes reached or even slightly surpassed 100,000 reefers produced. All told, this was an improved result given the very slow 2nd and 3rd quarters, the harsh business climate and other events around the world that negatively affected harvests and the supply chain. The general perception for 2014 is that the reefer market will be stronger and more stable than in 2013. The growth forecast for reefer volumes in 2014 is 4-5%, compared with approximately 1% in 2013. Based on these indicators, we conservatively estimate that the total market will reach 120,000 reefers in 2014. MCI maintained our market ranking as the 2nd largest manufacture of both reefer containers and reefer machinery. For Star Cool, this was achieved through a combination of repeat sales, as well as by adding new customers, most recently Seatrade Reefer Chartering N.V. Our Star Cool service organisation has been busy conducting training sessions as well as assisting container operators who want to validate efficiency and performance of reefer equipment. This has been achieved through live trials as well as by exploring new commodities transported in CA mode. This number covers the shipment of avocado in detail, as well as the positive outcomes for growers and consumers as a result of having access to reliable, wide-spread CA transportation. Based on targeted case studies in developing countries, MCI is increasingly convinced that food waste around the world can be reduced if farmers and exporters in developing countries increase the use of MCI technologies like Star Cool CA and AV+. Our technologies now give small-scale farmers the opportunity to sell their fruit and produce in markets they had never dreamed of reaching - and to earn money they didn’t expect. This was MCI’s message on 11th December during our keynote address to the first UN SAVE FOOD partnership meeting in Rome. The meeting took place at the headquarters of the UN Food and Agriculture Organization (FAO) and attracted 151 representatives from all over the world. Our technologies are market-proven and the Star Cool CA system has now been in service for over four years. The good news is, there are still many unexplored markets for the use of controlled atmosphere in common reefer container services. Our CA product reaffirms MCI as a leader in the development of reefer technology, like with the introduction of frequency controlled compressors and the large & logical graphic display, back in 2005. We strive to maintain our position as technological innovators within the industry, meaning that continuous development work never ceases. Among other things, our focus is now on the next generation of energy-efficient refrigerants and a powerful air-cleaning system to maintain enhanced cargo quality inside the reefer container. As usual, you will be kept informed on the progress of our new reefer factory in Chile as it comes on stream. Initial production is still scheduled to commence in May 2014. We naturally hope that all our customers also will consider the San Antonio factory for their reefer investments in 2014 and onwards. The number of leasing companies holding Star Cool Integrated in stock has expanded beyond the two early adopters, CAI International and TAL International. Textainer placed a speculative order for Star Cool Integrated reefers, some of which have subsequently already been leased out. We believe it is important that container lines with Star Cool in their fleets are aware that we have sufficient stock of Star Cool Integrated to cover any short-notice leasing requirements. I hope that you find this year’s first edition of MCI Integrated Reefer News interesting and informative, and wish to thank you very much for your support to MCI in 2013!Page 2

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