Positive Expectations for Reefer Shipping

reefer shipping

As projected at the beginning of 2016, this year is proving to be one of the worst for global container shipping, with one exception – reefer shipping.

In written clarifications by The Journal of Commerce, Container News, World Cargo News and Cleanleap, studies show cold chain has proved to be growing strong with frozen food shipments up 4% and chilled products up by 7%. The expectation being that the global refrigerated ocean transportation market will grow steadily from 2016 through 20201.

According to the latest edition of the Reefer Shipping Market Review and Forecast 2016/17, by 2020 seaborne reefer cargo will reach a staggering 120 million tonnes – increasing by an average of 2.5% per annum2. Such increases will have a direct effect on both container lines with reefer capacity and specialized reefer operators.

So where are these predictions coming from? One strong theme in reefer shipping performance is being attributed to the growing demand for food throughout Asia and rapid growth in meat imports into China3. China’s cold chain is now reported to be growing at 25% per year and projected to be worth $75 billion by 20174. In addition to the Asian market, Indian cold chain is also forecast to grow at 25% per year to 2017. This prediction is being accredited to popular fast food supply exports to India tripling over the last six years. Evidence shows the reefer shipping sector is also betting on growth in new and emerging economies, including Cuba. Trade organizations and industry groups have already conducted trade missions to Cuba in anticipation of the lifting of the U.S. trade embargo5.

…having reliable equipment when and where it’s needed is mandatory.

Emerging economies are not the only impact being taken into account, new business segments such as floriculture and pharmaceuticals are anticipated to continue to contribute greatly to the reefer shipping sector. Floriculture, or flower farming, is a $32 billion industry. It ranks as the third-largest U.S. crop, and growers in California make up 75% of the market. Pharmaceutical shippers are also looking more closely at ocean freight for their temperature-controlled shipments. The seasonal nature of floricultural and agricultural products combined with their short shelf lives mean having reliable equipment when and where it’s needed is mandatory. Despite the many current difficulties for the maritime sector, the predicted growth of reefer shipping has an encouraging outlook.

1http://www.joc.com/international-logistics/cool-cargoes/reefer-market-poised-growth-faces-supply-chain-challenges_20160709.html

2http://container-news.com/perishable-reefer-trade-growth-remain-strong-drewry/

3””Reefer Cargo is Hot” World Cargo News Magazine, September 2016, pp. 17

4http://cleanleap.com/brace-yourself-cold-chain-coming/cold-chains-developing-world-catch-and-leapfrog

5http://www.joc.com/port-news/international-ports/cubas-mariel-port-has-ambitious-plan-become-giant-feeder-hub_20160704.html

Our JOURNEY into Lean Six Sigma after 10 months

Lean Six SigmaIn February, at the beginning of our adventure, we described what Lean Six Sigma is, and the need for implementation at ESL Power Systems. ESL constantly seeks to identify ways to improve. To recap, even the best companies have waste (things that don’t add value to the product) and variation in processes that cost a company money. Our goal is to focus on getting the customer what they want, when they want it, “right the first time.”

OUR ROAD MAP

The first step in our journey was to educate and help everyone on board understand the path we were heading down. This very important first step allowed employees, from company owners to shop assemblers, comprehend the concept of continuous improvement and got everyone moving in the same direction.

TOOLS ALONG THE WAY

The first tool we put in place was 5S. The goal of 5S is to organize the workplace for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order. The 5S steps are Sort, Set-in-Order, Shine, Standardize and Sustain. At ESL, I’m happy to say that we are well along the 5S road!
Another tool being used is the “value stream map.” This “map” helps navigate our processes and seeks to eliminate waste. Along the same lines, we have implemented software called LeanKit, which assists in visualizing our work as it flows through our company, providing a big-picture understanding of our procedures.

NAVIGATIONAL PLANS

Moving forward, ESL’s executive committee has completed what we call the “3SL.” This is a 3 year plan for the organization that spells out a clear “true north;” ensuring everyone in the company knows what our plans are for the future. This transparency of goals ensures the company as a whole is heading in the right direction. The 3SL contains (3) elements:

  • 10 key metrics tracked
  • Goals for each metric
  • Specific projects to get us to our goal

This has become the most important document in the company.

We have made much progress over the last several months, and we must work hard to continually improve our products and processes to remain competitive in an ever changing market. We feel positive we will be successful and through our continuous improvement program create additional value for our customers in the future.

Do You have an Effective Emergency Backup System?

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September is National Preparedness Month.  Is your business ready in the event of an emergency? We can mitigate risk, both to our lives and our property, by being proactive and planning ahead for a disaster.

As a business owner, being prepared means having an effective emergency backup system.  An important step in implementing this system is selecting a manual transfer switch that can quickly and safely be connected to a generator should utility power be out for a prolonged period of time. In ESL’s blog, 6-Ways to Select a Manual Transfer Switch we cover the factors that should be considered when determining which type of transfer switch is most suitable for your business.

Ensure your business will be the one to have the lights on in the aftermath of an emergency…

In addition to a reliable back up system, your company should have a plan. Determine how you’ll get your business back up and running. Make a Check list! Assign responsibilities and determine if additional training is necessary to perform the tasks assigned. Include a backup person responsible for a task if your primary is off site.

Plan regularly scheduled maintenance. Keep your equipment up to standards and ready at a moment’s notice. NEC regional standards provide guidelines for regularly testing electrical equipment. ESL’s TripleSwitch —  a 3-way manual transfer switch —  simplifies load bank testing procedures and also provides a safe way to connect a backup generator in the event a permanent generator malfunctions. Read more about this process in our recent blog on how to Streamline Load Bank Testing.

Ensure your business will be the one to have the lights on in the aftermath of an emergency, ready to serve your customers at a time when demand is high!

Remember, it’s never too late to make sure that you’re prepared for an emergency or loss of power!

Streamline Load Bank Testing

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Load bank testing is necessary for facilities such as water wastewater plants, data centers, high rise buildings, and nursing care centers.

According to NEC Article 708 and NFPA 110, automatic transfer switches are required to be regularly tested. These regulations are in place to ensure that when utility power goes down, the backup equipment will effectively support the facility’s electrical requirements.

The time and cost associated with load bank testing procedures, which have to be repeated at regular intervals, can be arduous.

ESL’s TripleSwitch, a safety-interlocked 3-way manual transfer switch, is UL 1008 Listed up to 3000A and significantly reduces the time needed to make required connections and disconnections when load bank testing. The TripleSwitch was specifically designed for two purposes:

  1. To streamline load bank testing procedures.
  2. To provide a redundant and safe way to connect a backup generator in the event the permanent generator malfunctions, requires routine maintenance, or if utility power fails during load bank testing.

ESL’s TripleSwitch provides 4 primary benefits for facilities that have an automatic transfer switch and permanent generator:

  1. Reduces time required for making the necessary connections for load bank testing
    Load bank testing can be challenging and time consuming. With multiple connects and disconnects of electrical connectors between the permanent generator and ATS this process can tie up manpower. From start to finish, it can take 2 people up to 10 hours to complete a full load bank test. With ESL’s TripleSwitch system, the resources required to load bank test are minimized netting a considerable time savings.  With cam-style connectors, load bank connections can be made in minutes.
  1. Provides portable generator connection for redundant backup
    Since the permanent generator is disconnected from the system during load bank testing or for repairs, the facility’s power systems are now susceptible to power loss in this time. ESL’s solution minimizes this risk.  Since the TripleSwitch has dual functionality, a portable back-up generator can quickly be connected to ESL’s 3-way manual transfer switch in the event utility power fails or the permanent generator has performance issues.
  1. Mitigates risk of making faulty or incorrect connections when reconnecting the permanent generator and/or ATS after load bank testing is complete
    The permanent generator and ATS are directly wired to the TripleSwitch, allowing connections to be made to the load bank or emergency back-up generator via color-coded cam-style connectors instead of the traditional hardwiring method.
  1. Reduces wear and tear of ancillary equipment
    It is not uncommon to damage wire conductors when making frequent connects and disconnects of the cables. With ESL’s TripleSwitch, connections to the load bank are made with cam-style connectors, preventing unavoidable wear and tear of cables and termination lug threads.

ESL’s unique UL 1008 Listed TripleSwitch system simplifies the traditional connection/disconnection process required for load bank testing of permanent standby generators for facility power systems. It also combines generator quick connects for redundant backup portable power at a much lower cost, smaller footprint, and can virtually eliminate wiring mistakes.

Additional TripleSwitch resources, such as specifications, spec sheets, and case studies, can also be found here.

Eight Things to Consider When Selecting a Company Switch

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There are a number of options to consider when selecting and installing a company switch. Below is a list of 8 key items to answer before purchasing your unit.

1. What is the incoming wire size to be accommodated?
It is important to match the incoming wire size; you don’t want to have lugs on the company switch that are too small to accept the feed wires available at the installation. Make sure to indicate where the conduit will enter the enclosure.

2. Is 200% neutral required?
If unbalanced power is a problem, then an oversized neutral can be specified. If the company switch will be feeding more than one set of equipment, dual neutrals may be necessary. Depending on the amperage, there could be six cam-lock receptacles instead of five.

3. Is isolated ground required?
If the company switch will feed a sound system it is common to isolate the ground from the equipment ground in order to provide a noise-free ground return. If this is the case, an isolated ground is recommended.

4. Are direct-wire lugs needed?
If the equipment that is to be connected to the company switch does not have cam connectors available, direct-wire lugs will allow bare-wire ends to be connected.

5. Is a digital ammeter required?
An ammeter will allow quick and easy reading of the current being drawn through the company switch at a given time.

6. Is an interior work light required?
This option is very useful in dark theater environments, providing a lit chamber makes for easier connections.

7. Will the switch be inside (NEMA Type 1 enclosure) or outside (NEMA 3R enclosure)?
Standard ESL company switches are NEMA Type 1 however, if your unit will be installed outside, NEMA 3R should be specified.

8. Will the company switch use an electrical interlock or a mechanical interlock?
A mechanical interlock is more reliable; an electrical interlock can fail and expose live parts, while a mechanical interlock is a rock-solid way to ensure power is off to the company switch.

Interested in learning about ESL Company Switch features? Watch our ShowSwitch – Company Switch video here!

ESL Power Systems would be happy to discuss these options with you and ensure you get the right company switch for your venue! Contact us at 1-800-922-4188 or info@eslpwr.com for more information.